Takeovers

(asked on 13th March 2024) - View Source

Question to the Department for Digital, Culture, Media & Sport:

To ask the Secretary of State for Culture, Media and Sport, what her Department's criteria are for referral of a takeover on public interest grounds to (a) Ofcom and (b) the Competition and Markets Authority.


Answered by
Julia Lopez Portrait
Julia Lopez
Minister of State (Department for Science, Innovation and Technology)
This question was answered on 21st March 2024

The criteria for the Secretary of State for Culture, Media and Sport to intervene in any media merger are set out in the Enterprise Act 2002.

Where the Secretary of State has reasonable grounds for suspecting that a merger covered by the Act has taken place or is in progress, and that one or more public interest consideration is relevant to the merger, she may issue an intervention notice. The intervention notice means that the CMA reports to the Secretary of State on whether a merger covered by the Act has been created or is in progress, whilst Ofcom report to the Secretary of State on the effect of the public interest considerations on the case.

The Secretary of State then decides whether to refer the case for further investigation by CMA (a “phase 2” investigation). She has discretion to make a “phase 2” reference f if she believes that it is or may be the case both that one or more public interest considerations outlined under Section 58 of the Enterprise Act 2002 is relevant to the case and that the merger may be expected to operate against the public interest. The CMA must normally report back to the Secretary of State within 24 weeks of a reference being made. Once the Secretary of State receives the CMA report, she must decide whether to make an adverse public interest finding. If the Secretary of State does make an adverse public interest finding then she can take action to remedy the situation - in an appropriate case this could include making an order to block or unwind a merger.

Any decision the Secretary of State makes in this process is in a quasi-judicial capacity.

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