UK: News Corp. too dominant, falls under legal scrutiny?

Posted by Jean Yves Chainon on February 27, 2007 at 12:23 PM

The Blair administration has called for an investigation into News Corporation’s media interests. The investigation will focus on BskyB’s satellite TV monopoly and 17.9% stake in UK’s main commercial broadcaster ITV. Chances are justice will also probe News Corp.’s press interests.

Trade and industry secretary Alistair Darling has asked the telecomm regulator Ofcom to review News Corp.’s stake in ITV, to decide whether it "raises public interest concerns about the number of different owners of media enterprises."

The remit could also allow legal scrutiny of Murdoch’s four national newspapers – The Times, Sunday Times, The Sun and News of the World. Combined, these papers reach 37% of the nation’s readership.

Controversy has sparked over the possible political causes of this investigation, but ministers have insisted it was conducted on legal grounds.

House representatives acclaimed the decision. It is "a pivotal moment in British broadcasting when finally a government minister has had the courage to stand up to Mr Murdoch," said MP John Grogan.

On the other side, BSkyB CFO Jeremy Darroch thought that "this is very negative in terms of the investment climate for this business."

"Any positive environment for investment requires that business should be able to rely with confidence on government guidance when making decisions."

Source: Warc.com