Draft Enterprise Act 2002 (Definition of Newspaper) Order 2025
Enterprise Act 2002 (Amendment of Section 58 Considerations) Order 2025
(1 day, 21 hours ago)
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The Committee divided: - Ayes: 10 / Noes: 2 - Question accordingly agreed to.
The Committee divided: - Ayes: 10 / Noes: 2 - Question accordingly agreed to.
The Parliamentary Under-Secretary of State for Culture, Media and Sport (Stephanie Peacock)
I beg to move,
That the Committee has considered the draft Enterprise Act 2002 (Definition of Newspaper) Order 2025.
The Chair
With this it will be convenient to consider the Enterprise Act 2002 (Amendment of Section 58 Considerations) Order 2025 (S.I., 2025, No. 737).
Stephanie Peacock
It is a pleasure to serve under your chairship, Mrs Hobhouse. Thank you for your guidance.
I am pleased to be speaking to these orders, the first of which was laid before the House in draft on 26 June and the second of which was made on 26 June and is subject to the made affirmative procedure. The Government are clear in our commitment to a free and pluralistic media whereby all citizens in all parts of the UK can access high-quality news and other information from a range of sources, enabling them to form their own opinions. The public’s continued access to diverse news, views and information is fundamental to the health of our democracy as well as our nation. That is why the Enterprise Act 2002 contains powers that allow the Secretary of State to intervene in media mergers and acquisitions that may give rise to public interest concerns —about, for example, the accurate presentation of news and free expression of opinion—and to take appropriate action to remedy any such concerns that arise.
Owing to the more limited nature of the news market in 2002, when the Enterprise Act became law, only print newspapers published on a daily, Sunday or local basis and broadcasters are in scope of the core media mergers regime. The media landscape has undergone significant changes in the intervening decades, and our laws need to keep pace with technology and evolving news consumption habits. The shift to digital news was clearly evidenced in the Ofcom report “News consumption in the UK: 2024”, which showed that 71% of UK adults now consume news via online sources. We need to reflect the fact that news is increasingly accessed and consumed online. That is why we are here today; these orders are designed to address that very issue.
In its 2021 statutory review of the operation of media ownership rules, Ofcom recommended that the Secretary of State broaden the scope of the public interest considerations beyond print newspapers and broadcasters to capture a broader range of news creators. Ofcom set out its belief that that would better reflect the way in which people access news now. Between 6 November 2024 and 13 January 2025, my Department ran a technical consultation on proposals derived from Ofcom’s recommendations: to expand the scope of the media mergers regime from print newspapers and broadcasters to encompass online newspapers and periodical news magazines, and to extend the application of key media public interest considerations to this new definition of newspapers, and broadcasters carrying news programmes.
Those public interest considerations are: the need for accurate presentation of news and free expression of opinion in newspapers; the need for sufficient plurality of views in each UK market for newspapers; and the need for sufficient plurality of persons with control of media enterprises. At the same time, the Government proposed to extend the scope of the new foreign state influence regime to online news publications.
Having taken into account the views of industry, Parliament and the public, we are confident that our changes balance the need to protect the public interest in a digital age with our responsibility to support a competitive, sustainable and plural media environment. Two related orders—the ones that we are discussing today—are required to enact the policy changes.
First, the draft Enterprise Act 2002 (Definition of Newspaper) Order 2025 will amend the definition of “newspaper” in the Enterprise Act 2002 so that it encompasses print and online newspapers and print and online periodical news magazines. Provision has been made to ensure that the scope of the regime extends only to publications that are connected with the UK.
In effect, the amendments will expand and align the scope of the media merger standard and special public interest regimes and the foreign state influence regime. All three regimes will now apply to acquisitions of print newspapers, news magazines and online newspapers. That will create a consistent and forward-looking public interest regime. Importantly, the draft order will enable the Secretary of State to intervene on public interest grounds—subject to jurisdiction—in the acquisition of an online-only newspaper. Until now, she has not had the power to do so.
The second order, the Enterprise Act 2002 (Amendment of Section 58 Considerations) Order 2025, will extend the application of public interest considerations in section 58 of the Enterprise Act 2002 to “news media”—a new term defined as newspapers or broadcasters of news programmes. Those public interest considerations include the need for accurate presentation of news and free expression of opinion in newspapers, and the need for sufficient plurality of views in each UK market for newspapers. Whereas the public interest considerations I have just mentioned can already be considered in the context of newspaper mergers, the changes made by the section 58 order will mean that the Secretary of State will now be able on any of the aforementioned public interest grounds to intervene in mergers involving the broadcasters of news programmes.
The order will also extend the public interest consideration on the need for sufficient plurality of control of the media in relation to every different UK audience. That public interest consideration currently applies to mergers involving broadcasters, but the Secretary of State will now also be able to consider its relevance to mergers involving print and online newspaper and news magazine enterprises. We recognise the challenging financial context for newspapers, and the importance of the balance between encouraging investment in the sector and being able to protect against market consolidation that might be detrimental to our plural and thriving news market. It is important to note in relation to the changes made by the section 58 order that the Secretary of State’s powers under the public interest regime continue to be discretionary. There is a range of possible outcomes to any investigation that she may commence, and in assessing an individual case, the Secretary of State would need to consider the facts of the case and the evidence at hand.
Returning to the orders, the foreign state influence regime introduced in May 2024 already prohibits foreign states from acquiring control or influence over the policy of print newspaper and periodical news magazine enterprises. The regime will be extended by the definition of newspaper order such that foreign powers will now also be banned from acquiring control or influence over the policy of an online newspaper or news magazine enterprise. The benefit of extending the scope of the prohibition in this way is to protect plurality of views and to prevent potential editorial interference or censorship from foreign states in online-only newspapers, which form a large part of the UK’s news consumption. That expansion will also ensure alignment across the media merger regime for both print and digital news publications, creating a consistent, forward-looking regime.
The amendments to the definition of newspaper for the foreign state influence regime will apply with retrospective effect from the day that this change was announced: 15 May 2025. The Secretary of State will be required to intervene in any completed or anticipated mergers involving an online newspaper enterprise that completed or were in progress on or after 15 May. If she has reasonable grounds to suspect a foreign power is or will be able to control or influence the policy of the online newspaper enterprise as a result, all other changes will apply prospectively.
Both the definition of newspaper order and the amendment of section 58 considerations order will make the public interest regimes and the foreign state influence regime reflect the various ways people access and consume news today. With those changes, we are modernising protections for our world-class UK news market, by enabling or requiring the Secretary of State to intervene in a broader range of news mergers that may operate against the public interest. The orders balance the need to protect the public interest in a digital age with our responsibility to support a competitive, sustainable and plural media environment.
Stuart Andrew (Daventry) (Con)
It is a pleasure to serve under your chairship, Mrs Hobhouse. I welcome these orders, and I hope it will please the Committee to hear that I do not intend to detain us I do, however, want to raise a few issues.
As the Minister said, a statutory review in 2021 conducted by Ofcom recommended that the Secretary of State should broaden the scope of public interest considerations beyond print newspapers and broadcasters to capture a broader range of news creators to reflect changes in consumption. As many colleagues will be aware, the 2024 news consumption report found that 71% of UK adults consume news via online sources. It is therefore right that action is taken to future-proof our media regimes. The Government admit that their measures are narrower than Ofcom’s recommendations. Will the Minister report on any issues Ofcom may have raised with her about this approach, given that it does not cover the full recommendations?
The Government’s press release noted that they did not want to put any “undue pressure on businesses”. Is the Minister confident that the right balance has been struck? I accept that this is quite a narrow tightrope to walk, but it is important that we get this right. I also note that some respondents to the Government’s consultation shared the view that broadening the scope of the public interest consideration to apply to mergers involving enterprises involved in newspapers or broadcasting was unnecessary. The responses suggested that this could have a
“chilling effect on investment and consolidation”.
Will the Minister please reassure the Committee that this will not be the case, as we want to see as much investment as possible, especially given the current media landscape?
Can the Minister update us on the secondary legislation to further bolster the foreign state influence regime, to prevent multiple states acquiring 15% of newspapers? When will it be laid? We had to alert the Government to this seemingly a significant oversight in the drafting of the legislation. There is clearly a lot of concern out there, and while we want to see investment, we must safeguard against any state ownership of our free media.
More broadly, the Opposition will always support accurate news reporting, freedom of expression and the plurality of voices within the newspaper market, so I welcome the speech the Minister made and the action the Government have taken. None the less, I would be grateful for answers to those questions.
Max Wilkinson (Cheltenham) (LD)
It is a pleasure to serve under your chairship, Mrs Hobhouse. The Minister presented these orders as a tidying-up job, but the Liberal Democrats believe they need to be viewed in the broader context of the recent SI allowing up to 15% ownership of newspapers by foreign Governments. We remain concerned about the sale of any portion of UK news media to foreign Governments. The shadow Minister, the right hon. Member for Daventry, raised the issue of cumulative ownership, and I hope that the Minister will reassure us on that later.
I do not agree with everything written in UK newspapers. Indeed, since my election I have been described by one commentator as a “drab clunker”, and more recently by another as a “pillock” and an “idiot.” I assure the Committee that I have been called much worse in my political career, but at least I can be sure that what is written in the UK press is not written by journalists under the influence of a company part owned by a foreign Government, including those who are hostile to British values, the UK Government, or Britain as a whole.
The Minister knows that my style as a Liberal Democrat spokesperson is firm but fair scrutiny, mostly with a smile, and we have a decent relationship on that basis. I have asked some very clear written questions of the Government on the broader issue of foreign state ownership of UK news, but I regret that the answers so far have left a large grey area and given us cause for concern.
Even if the Government are in favour of the sale of UK media to foreign Governments, the official Opposition are ambivalent about it or in favour, and the plastic patriots in Reform UK are actively in favour, the Liberal Democrats intend to stand up for the independence of our media as a crucial pillar of our democracy. We opposed the initial legislation on this issue a few weeks ago, and unless the Minister can provide the reassurances we seek, we will oppose the regulations today and in future.
Stephanie Peacock
It has been an important debate, and I am grateful for the contributions—in particular, that of the official Opposition. It is a delight to see the shadow Minister in his place; I am used to calling him Minister, as I used to sit in where he is now. I appreciate his contribution, his questions and his support, as I do the always cordial approach from the Liberal Democrats.
The debate shows the wide support for protecting a thriving and plural news market that acts as the cornerstone of democracy, especially in this digital age. The debate also highlights the challenges of striking the right balance between encouraging a range of investment in the sector and safeguarding the public’s ability to access high quality news that they can trust. That balance is especially fine in the light of the continuing evolution of the digital and online space.
In answer to the point around investment, the Government have decided to take a proportionate approach that reflects the most important changes to the way in which the public consume news in the present day. The approach will balance not stifling or chilling investment and protecting the public. The Government are committed to supporting a financially sustainable press sector, recognising the financial challenges that many have faced over recent years. We acknowledge the role that consolidation can play; we are developing our local media strategy in recognition of the importance of this, and are working cross-Government with other stakeholders as the strategy develops. We agree that encouraging a range of investment in the sector is important, and the Government are committed to maintaining a thriving and pluralistic media landscape, but that obviously has to have a balance.
Moving on to the questions about the foreign state ownership regime, we of course debated that last month and it was passed by a vote of the House earlier this month. I committed to updating the House by the middle of this week, and I shall. Obviously, this issue emerged under the previous Government; it was very clear that we do not want foreign states having influence. The 15% cap balances the need to protect the sector from state influence with the reality that newspapers need to access new investment. Of course, if there is any hint that that is anything other than a passive investment, the Secretary of State is obliged to act. We have debated that. I will introduce a further SI and update the House later this week.
Question put.