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You can find the current article at its original source at https://www.theguardian.com/business/2017/sep/12/murdochs-sky-takeover-bid-referred-to-competition-watchdog
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| Version 1 | Version 2 |
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| Murdochs' Sky takeover bid to be referred to competition watchdog | Murdochs' Sky takeover bid to be referred to competition watchdog |
| (35 minutes later) | |
| Rupert Murdoch’s proposed takeover of Sky faces a two-pronged investigation by the Competition and Markets Authority (CMA) after the culture secretary said concerns about the £11.7bn deal mean it requires further scrutiny. | |
| Karen Bradley told parliament she was minded to refer the deal to the regulator for a six-month examination on the grounds of media plurality and commitment to broadcasting standards. | |
| A referral on the grounds of media plurality had been expected, but the prospect of a referral on broadcasting standards is a surprise and will frustrate the Murdochs. | A referral on the grounds of media plurality had been expected, but the prospect of a referral on broadcasting standards is a surprise and will frustrate the Murdochs. |
| Bradley’s announcement contradicts recommendations from Ofcom, the media regulator. It said there were grounds for an investigation on media plurality based on concerns about how dominant the Murdoch family could be in public life if they were allowed to own all of Sky, but the evidence available did not justify a broadcasting standards investigation. | |
| Bradley, however, said the existence of “non-fanciful concerns” about compliance procedures at Fox News and corporate governance at the Murdochs’ companies meant the legal threshold for widening the investigation into the deal had been met. | Bradley, however, said the existence of “non-fanciful concerns” about compliance procedures at Fox News and corporate governance at the Murdochs’ companies meant the legal threshold for widening the investigation into the deal had been met. |
| Shares in Sky fell 3% after the announcement, as concerns increased among investors about delays to the takeover and whether it will go ahead. There will be a 10-day consultation before Bradley makes her final decision. During this time, Sky and the Murdochs can make submissions to the government. | |
| 21st Century Fox wants to buy the 61% of Sky it does not own. Fox is controlled by Rupert Murdoch and his sons Lachlan and James. | |
| Bradley’s initial view on the deal in June was in line with Ofcom’s report. | Bradley’s initial view on the deal in June was in line with Ofcom’s report. |
| Pressure has since increased, however, for the takeover to be referred on the grounds of broadcasting standards. The campaign group Avaaz and a group of high-profile MPs led by Ed Miliband have threatened to launch a judicial review if Bradley does not refer the deal to the CMA on broadcasting standards. | Pressure has since increased, however, for the takeover to be referred on the grounds of broadcasting standards. The campaign group Avaaz and a group of high-profile MPs led by Ed Miliband have threatened to launch a judicial review if Bradley does not refer the deal to the CMA on broadcasting standards. |
| On her concerns about compliance procedures at Fox News, Bradley said: “The fact that Fox belatedly established such procedures does not ease my concerns, nor does Fox’s compliance history. | On her concerns about compliance procedures at Fox News, Bradley said: “The fact that Fox belatedly established such procedures does not ease my concerns, nor does Fox’s compliance history. |
| “Ofcom was reassured by the existence of the compliance regime which provides licensees with an incentive to comply. However, it is clear to me that parliament intended the scrutiny of whether an acquiring party has a ‘genuine commitment’ to attaining broadcasting standards objectives to happen before a merger takes place. | “Ofcom was reassured by the existence of the compliance regime which provides licensees with an incentive to comply. However, it is clear to me that parliament intended the scrutiny of whether an acquiring party has a ‘genuine commitment’ to attaining broadcasting standards objectives to happen before a merger takes place. |
| “Third parties also raised concerns about what they termed the ‘Foxification’ of Fox-owned news outlets internationally. On the evidence before me, I am not able to conclude that this raises non-fanciful concerns. | |
| “However, I consider it important that entities which adopt controversial or partisan approaches to news and current affairs in other jurisdictions should, at the same time, have a genuine commitment to broadcasting standards here. These are matters the CMA may wish to consider in the event of a referral.” | “However, I consider it important that entities which adopt controversial or partisan approaches to news and current affairs in other jurisdictions should, at the same time, have a genuine commitment to broadcasting standards here. These are matters the CMA may wish to consider in the event of a referral.” |
| The culture secretary also said she was “not confident that weaknesses in Fox’s corporate governance arrangements are incapable of affecting compliance in the broadcasting standards context”. | The culture secretary also said she was “not confident that weaknesses in Fox’s corporate governance arrangements are incapable of affecting compliance in the broadcasting standards context”. |
| Tom Watson, Labour’s deputy leader, welcomed Bradley’s announcement. | Tom Watson, Labour’s deputy leader, welcomed Bradley’s announcement. |
| “I think it’s the first time a minister in the current government has ever stood in the way of what the Murdochs want, and frankly not before time, so well done,” he said. “As they say in the Black Country, she’s a good ‘un.” | “I think it’s the first time a minister in the current government has ever stood in the way of what the Murdochs want, and frankly not before time, so well done,” he said. “As they say in the Black Country, she’s a good ‘un.” |