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05|01|04

Ofcom announces guidance on media mergers public interest test

Ofcom today set out its draft guidance on the public interest test to be applied to media mergers in the event of a request for further investigation from the Secretary of State for Trade and Industry.

The draft guidance is being put forward for consultation prior to implementation. It follows the recent publication of draft guidance from the DTI on its own process for intervening in a proposed merger, including the advisory role played by Ofcom in that process.

Full details of Ofcom's draft guidance can be found online - see Related Items

The DTI's consultation can be found online at www.dti.gov.uk

Background

The Communications Act 2003 requires Ofcom to investigate matters of public interest arising from the merger of newspapers or broadcast media companies, should such an investigation be requested by the Secretary of State. Under the Communications Act, Ofcom has competition powers concurrent with the Office of Fair Trading.

Sections 375 to 389 of the Communications Act set out Ofcom's advisory obligations with regard to media mergers. Ofcom would implement the media mergers public interest test, often described as the plurality test, should the Secretary of State wish there to be further investigation of:

• A proposed merger involving newspaper enterprises
• A proposed merger involving broadcasting enterprises
• A proposed merger between broadcasting enterprises and newspaper enterprises

In the case of a newspaper merger, the public interest considerations, as defined by the Act, are:

• The need for accurate presentation of news in newspapers
• The need for free expression of opinion in the newspapers involved in the merger
• The need for, to the extent that is reasonable and practicable, a sufficient plurality of views expressed in newspapers as a whole in each market for newspapers in the UK or part of the UK

In the case of a broadcasting merger or a cross-media merger, the public interest considerations as defined by the Act, are:

• The need for there to be a sufficient plurality of persons with control of the media enterprises serving that audience in relation to every different audience in the UK or a particular area/locality of the UK
• The need for the availability throughout the UK of a wide range of broadcasting which (taken as a whole) is both of high quality and calculated to appeal to a wide variety of tastes and interests
• The need for persons carrying on media enterprises and for those with control of such enterprises to have a genuine commitment to the attainment in relation to broadcasting of the standards objectives set out in Section 319 of the Communications Act 2003 (for example, governing matters of accuracy, impartiality, harm, offence, fairness and privacy in broadcasting).

Ends

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