Update on the proposed merger of Sky with 21st Century Fox

06 March 2017

Ofcom has a duty to be satisfied that broadcast licensees are fit and proper on an ongoing basis, and we consider it appropriate to examine any implications of a change of control over Sky for its holding of broadcast licences.

The Secretary of State for Culture, Media and Sport announced on 3 March that she is minded to intervene in the proposed merger of Sky with 21st Century Fox on two public interest grounds: media plurality (that there is a sufficient plurality of persons with control of the media enterprises serving audiences in the UK) and commitment to broadcasting standards (the need for media enterprises and their controllers to have a genuine commitment to the attainment of the broadcast standards objectives).

In the event that the Secretary of State does decide to intervene on one or both of these grounds, then Ofcom would be required to assess and report to the Secretary of State on them.  The Secretary of State has indicated that she will make her decision on whether to do so by 17 March.

Although any public interest assessment that Ofcom is asked to make by the Secretary of State and our ongoing duty under the Communications Act to assess whether a licensee is fit and proper are separate legal processes, the issues we may be required to consider in any public interest assessment may overlap with our own consideration of Sky’s fitness to hold broadcasting licences in the event of a change of control.

We will therefore set out our approach to the timing of our fit and proper assessment once it is clear whether or not we will be asked by the Secretary of State to conduct a public interest assessment.