Fox-Sky Merger

Baroness Neville-Rolfe Excerpts

Thursday 20th July 2017 Lords Chamber

[Lord Keen of Elie]

I say to the noble and learned Lord that Ofcom is there to discharge its statutory functions. The Secretary of State is here to discharge her statutory functions in a quasi-judicial manner, and she will do so having regard to all the evidence. She will have to evaluate that evidence, and she will do so in arriving at her final decision. As the noble and learned Lord will be aware, it is not usual to disclose either the making of legal advice or its content. That is reflected in the Law Officers’ Convention and, indeed, in the Ministerial Code, so I make no further comment on that point.

As regards the noble and learned Lord’s observations about the behaviour of Fox and the position of Sky going forward, clearly all these considerations will be in mind when the Secretary of State arrives at her final decision—one she has not yet made in respect of either plurality or broadcasting standards. In due course, those matters referred to a phase 2 inquiry will be the subject of the most intense investigation by the CMA. So, at the end of the day, the points of concern raised by the noble and learned Lord are bound to be addressed in the context of this decision. As regards the timing of the decision, it is regretted that it may fall during a period of recess; indeed, I acknowledge that. That is one reason why this Statement is being made to the House today—to try to ameliorate the consequences of that.

[Baroness Neville-Rolfe (Con)]

My Lords, I share the concerns expressed about the delay in this matter, although I do not have quite the same emotional approach to the issues. My noble and learned friend outlined the constraints. Assuming that there is a reference to the CMA, which seems likely, what can be done to ensure that there is proper analysis of the situation that broadcasting faces, with its being heavily regulated in a world where the internet is driving everything and Sky and its competitors are becoming more and more dependent on the digital world, as the noble Lord opposite explained? Is there a way in which that can be looked at in the context of this deal, to shine some light on this important matter? If not, is there another way that it can be addressed?

[Lord Keen of Elie]

I acknowledge the importance of the point made by my noble friend. Clearly, in the context of broadcasting, one is looking not only at terrestrial broadcasting but at the wider sphere of news and broadcasting across the internet, in the modern age. Those are matters that the Competition and Markets Authority will have in mind when it comes to make its decision following its in-depth review under phase 2, if a decision is made that there should be a phase 2 referral.