This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at https://www.theguardian.com/media/2017/mar/16/ofcom-has-much-to-mull-in-assessing-fox-as-fit-and-proper-to-own-sky

The article has changed 3 times. There is an RSS feed of changes available.

Version 0 Version 1
Ofcom has much to mull in assessing Fox as 'fit and proper' to own Sky Ofcom has much to mull in assessing Fox as 'fit and proper' to own Sky
(35 minutes later)
If Karen Bradley hadn’t asked for a regulatory review of Rupert Murdoch’s takeover of Sky, it would have been a scandal. That she did reflects the fact that, at this stage, it is the logical thing to do.If Karen Bradley hadn’t asked for a regulatory review of Rupert Murdoch’s takeover of Sky, it would have been a scandal. That she did reflects the fact that, at this stage, it is the logical thing to do.
The culture secretary was already minded to refer the Fox bid to take over all of the UK’s most profitable commercial broadcaster on two public interest grounds - media plurality and broadcasting standards. The culture secretary was already minded to refer the Fox bid to take over all of the UK’s most profitable commercial broadcaster on two public interest grounds – media plurality and broadcasting standards.
But what is particularly significant is that she gave her backing to a review of whether the Murdochs are “fit and proper” owners of such an important company.But what is particularly significant is that she gave her backing to a review of whether the Murdochs are “fit and proper” owners of such an important company.
Bradley justified this task for the media regulator, Ofcom, by citing many of the 700 responses to her inquiry into Fox’s bid. In doing so, she raises the corporate governance issues still dogging a family forced to drop the same takeover in 2011 because of the phone-hacking scandal.Bradley justified this task for the media regulator, Ofcom, by citing many of the 700 responses to her inquiry into Fox’s bid. In doing so, she raises the corporate governance issues still dogging a family forced to drop the same takeover in 2011 because of the phone-hacking scandal.
Even Bradleys’ predecessor, John Whittingdale, a man who made no secret of his admiration for the Murdochs or his belief that this takeover should be signed off, said earlier this month that he would have referred the bid because “there would be a huge political row if I didn’t … If you don’t refer it, you’re going to be accused of being got at by the Murdoch organisation”. Even Bradley’s predecessor, John Whittingdale, a man who made no secret of his admiration for the Murdochs or his belief that this takeover should be signed off, said earlier this month that he would have referred the bid because “there would be a huge political row if I didn’t … If you don’t refer it, you’re going to be accused of being got at by the Murdoch organisation”.
One of the issues is whether James Murdoch, Fox’s chief executive, should be allowed to take control of the combined group. The fact that he is already Sky’s chairman should make this a moot point, but for the youngest Murdoch son’s involvement in the previous family bid for Sky.One of the issues is whether James Murdoch, Fox’s chief executive, should be allowed to take control of the combined group. The fact that he is already Sky’s chairman should make this a moot point, but for the youngest Murdoch son’s involvement in the previous family bid for Sky.
For many of the deal’s opponents on the opposition benches and outside Westminster, the involvement of the former chief executive of the family newspaper business which owned the News of the World still constitutes a source of concern.For many of the deal’s opponents on the opposition benches and outside Westminster, the involvement of the former chief executive of the family newspaper business which owned the News of the World still constitutes a source of concern.
Cynics could see Bradley’s decision to bat the issue of a “fit and proper” test over to Ofcom as a way of heading off some of the criticism if she refuses to sanction Leveson part two, another controversy in her inbox. This inquiry into the relationship between the newspapers and the police was provoked by phone hacking and delayed by several criminal trials, and she is still considering whether it is worthwhile going ahead.Cynics could see Bradley’s decision to bat the issue of a “fit and proper” test over to Ofcom as a way of heading off some of the criticism if she refuses to sanction Leveson part two, another controversy in her inbox. This inquiry into the relationship between the newspapers and the police was provoked by phone hacking and delayed by several criminal trials, and she is still considering whether it is worthwhile going ahead.
Even without the additional fit and proper tests, media plurality and broadcasting standards are hardly straightforward for the competition authority and Ofcom, which is also to take over regulation of the BBC in two weeks.Even without the additional fit and proper tests, media plurality and broadcasting standards are hardly straightforward for the competition authority and Ofcom, which is also to take over regulation of the BBC in two weeks.
On the issue of plurality, the regulator must decide how much the bid further concentrates what is already one of the most concentrated media markets in the world. Yet plurality raised few concerns in 2011, long before Facebook became the main source of news for one in five of us and even more younger people.On the issue of plurality, the regulator must decide how much the bid further concentrates what is already one of the most concentrated media markets in the world. Yet plurality raised few concerns in 2011, long before Facebook became the main source of news for one in five of us and even more younger people.
How much does the increasing dominance of social media outweigh the greater political and cultural heft of television news and newspapers?How much does the increasing dominance of social media outweigh the greater political and cultural heft of television news and newspapers?
No one doubts that the takeover would bring together Britain’s monopoly satellite platform and its largest broadcaster by revenue with the might of the highly profitable US film and TV company.No one doubts that the takeover would bring together Britain’s monopoly satellite platform and its largest broadcaster by revenue with the might of the highly profitable US film and TV company.
The Murdoch family trust argue that because Fox and Sky were separated from the print business that owns the Times, the Sun and others following the last aborted deal in 2011, this is the only concentration that matters. The Murdoch family trust argues that because Fox and Sky were separated from the print business that owns the Times, the Sun and others following the last aborted deal in 2011, this is the only concentration that matters.
The family does, however, still own one of the three companies that control 71% of national newspaper circulation. A combination of those titles and Sky News would make it the owner of the biggest commercial news producer in the UK.The family does, however, still own one of the three companies that control 71% of national newspaper circulation. A combination of those titles and Sky News would make it the owner of the biggest commercial news producer in the UK.
Even in the relatively overlooked market of radio news, Sky News Radio is the main news supplier to more than 280 commercial stations and the biggest competitor to the BBC.Even in the relatively overlooked market of radio news, Sky News Radio is the main news supplier to more than 280 commercial stations and the biggest competitor to the BBC.
The Murdochs offered to spin off Sky News last time round as a way of proving its commitment to broadcasting standards, which included impartiality and accuracy.The Murdochs offered to spin off Sky News last time round as a way of proving its commitment to broadcasting standards, which included impartiality and accuracy.
The satellite business has a sterling reputation for impartial news. Its potential purchaser not so much. Indeed, so connected is Fox news with the rise of partisan full-throated reporting that the British media talk of an impending “foxification” of broadcast news.The satellite business has a sterling reputation for impartial news. Its potential purchaser not so much. Indeed, so connected is Fox news with the rise of partisan full-throated reporting that the British media talk of an impending “foxification” of broadcast news.
All of this means that Ofcom has a lot to get through and only 40 days to do so.All of this means that Ofcom has a lot to get through and only 40 days to do so.