Sky/21st Century Fox: Proposed Merger

John Nicolson Excerpts

Monday 6th March 2017 Commons Chamber

[Karen Bradley]

My hon. Friend is right; the fit and proper person test that Ofcom has is different from the grounds on which I can intervene under the terms of the Enterprise Act 2002. However, as I said in response to the hon. Member for West Bromwich East (Mr Watson), the evidence may well be the same.

[John Nicolson (East Dunbartonshire) (SNP)]

I thank the Secretary of State for advance sight of her statement and am encouraged to hear that she is minded to intervene in the proposed merger of Sky and Fox. Asking Ofcom to investigate the deal and file a report on media plurality and on commitment to broadcasting standards would be a welcome step in ensuring that this proposed merger is robustly scrutinised. The merger is likely to increase the influence of Rupert Murdoch and his family in the media in the UK, and Fox already has a controlling stake in Sky, as we all know. Another Murdoch company, News Corp, runs newspapers, through News UK, and radio stations, through the Wireless Group. At a time when smaller titles are struggling with poor circulation numbers and established newspapers are having to rethink their business models to survive, giving yet more power to the already dominant media giant seems counter-intuitive, to say the least.

Yet, it should also be acknowledged that television is adapting to changes in viewing habits and competition around the world. Many will argue that the investment in Sky might allow the UK to thrive in the international arena and to continue to compete with competitors such as Netflix. On this issue, it is important that the Secretary of State clarifies whether she will prioritise domestic or international plurality and competition when she makes a final decision on this merger. Furthermore, she rightly highlights a number of breaches of broadcasting standards by Fox and the behaviour and corporate governance failures of News Corporation in the past. The National Union of Journalists and victims of the phone hacking scandal have expressed concerns on how this deal can take place when part 2 of the Leveson inquiry has yet to be commenced. Does she agree that we should remain acutely aware of the reasons why past attempts to buy Sky were so fiercely resisted last time?

Finally, it was proposed that Sky News could be spun off to preserve its independence. Would the Secretary of State welcome such a move? After all, I presume that she, like the rest of us, is far from convinced that Fox is committed to the required editorial standards, such as on accuracy and impartial news coverage, that we expect in this country?

[Karen Bradley]

The hon. Gentleman has asked a number of detailed questions on the merits of the bid, but I am not able to comment on those at this stage. What I can say is that I am minded, based on the evidence I have seen so far, to refer the matter to Ofcom. The referral would be on the basis of the rules set out in the Enterprise Act 2002, and I look forward to representations from all parties in determining whether or not to take a final decision to intervene. I can assure him that I will return to this House, as and when I make that decision, to tell it first.