Media merger laws to be modernised for the digital age

• Proposal would extend powers to call in media mergers to online news sites and news magazines
• The move builds upon existing powers which already apply in relation to television, radio and certain print newspapers 

Culture Secretary Lisa Nandy has announced plans to broaden the scope of the UK’s media mergers regime, updating it for the digital age to reflect modern news consumption habits and better protect media freedom and plurality. 

The plans will allow for greater scrutiny in the public interest of deals to purchase UK online news publications and news magazines that might adversely impact accurate reporting, freedom of expression and media plurality; widening the scope of the regime beyond television, radio and print newspapers as it presently stands.

Currently the media mergers regime set out in the Enterprise Act 2002 allows the Culture Secretary to intervene in mergers and acquisitions of broadcasters (defined as services which require a licence under the Broadcasting Act 1996), as well as UK daily and Sunday print newspapers, and local periodical newspapers, which mainly circulate in the UK.

The media landscape has changed significantly since the Enterprise Act became law more than two decades ago. To reflect the way news is increasingly consumed online and the need to protect the freedom of the press as a cornerstone of democracy, today the Culture Secretary has launched a consultation seeking views on expanding the scope of the media mergers regime to include online news publications and weekly or monthly print news publications. 

Culture Secretary Lisa Nandy said:

Since the media mergers regime came into force more than twenty years ago, our laws haven’t kept pace with technology and evolving news consumption habits.

As people increasingly get their news online, we need a regime that is future-proof. That’s why I’m proposing further reforms to protect the availability of accurate, high-quality news from a variety of sources, ensuring media freedom continues to be upheld.” 

Mergers involving companies that own online news publications which are connected with the UK, for example online-only news providers such as HuffPost or The Independent, or the online arms of print publications - would now be within scope of the media mergers regime. This would mean the Culture Secretary has the ability to intervene in a merger, which meets certain conditions relating to turnover or share of supply, where they believe a public interest consideration may be relevant. According to Ofcom’s annual report on news consumption in the UK, nearly a quarter of UK adults (22%) access news via print newspapers, increasing to 34% when including their online platforms.

The consultation also proposes bringing news publications circulated on a weekly or monthly basis - such as The Economist or Prospect - in scope of the regime to ensure the legislation is fit for purpose and accurately reflects how people consume news; given daily, local, and Sunday publications are already included. 

The measures would ensure that the public interest can be safeguarded across these popular sources of news content for people across the UK. It would enable the Culture Secretary to intervene where necessary to protect the availability of a wide range of accurate and high-quality news, particularly for younger audiences as technology and news habits evolve.

Pending the conclusion of the consultation, the proposed changes to the Enterprise Act will be made via secondary legislation. The proposed inclusion of online news sites will apply both to the public interest media mergers regime and to the new foreign state influence regime. The powers would not apply retrospectively to historic transactions. 

The proposed reforms ensure a proportionate approach that reflects the way in which modern news is consumed, without putting undue pressure on businesses. They follow advice the Department for Culture, Media and Sport received from independent regulator Ofcom as part of its statutory review of the operation of media ownership rules, and do not involve any regulation of the editorial content of a news outlet. 

The UK has a strong track record for encouraging investment which has been critical to growth within the media and wider creative industries, and this pro-growth government will continue that trend, protecting free speech and providing a robust framework that encourages media plurality.

ENDS

Notes to Editors: