Culture Secretary Lisa Nandy is “minded to intervene” in Sky’s proposed £1.6bn takeover of ITV’s media and entertainment division, amid concerns about media plurality and the potential impact on Northern audiences.
In a letter to the companies, Nandy raised concerns that the deal could weaken the range of news views available over time. The North of England, the UK’s other nations and people from lower socio-economic backgrounds could be particularly affected because of their reliance on broadcast news, the BBC reported.
Sky and ITV have until October 20 to respond before Nandy makes a final decision on whether to issue a public interest intervention notice.
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The deal announced in July covers ITV’s free-to-air channels and ITVX streaming platform. It excludes the production business ITV Studios, whose programmes include Love Island and I’m a Celebrity… Get Me Out of Here.
Nandy’s concerns centre on freedom of expression, the range of views available in news media and the number of organisations controlling media serving different audiences.
She is also considering extending the public interest test covering the availability of high-quality, varied broadcasting to include streaming and on-demand programmes.
Current legislation does not cover the effect of a merger on those services. Any intervention on that additional ground would require a legislative change.
Nandy said: “If I decide to intervene on the basis of this new public interest consideration, I will bring forward legislation… to extend the application of the public interest consideration relating to the availability of a wide range of broadcasting to on-demand programmes.”
If she issues an intervention notice, Ofcom would assess the public interest considerations, while the Competition and Markets Authority would examine the merger and its potential effect on competition. Nandy would then decide whether to refer it for a more detailed investigation.
Sky said it would “carefully consider” the letter and “engage constructively” with the review.
“We remain confident that bringing Sky and ITV’s media and entertainment business together will create a stronger British media,” it said.
The company also pointed to its commitments to preserve ITV’s identity and public service role.
A Sky spokesperson said: “We have already made clear commitments to protect ITV’s identity, its free-to-air services and public service broadcasting obligations, and to ensure ITV News and Sky News remain distinct editorial voices.”
ITV said the potential intervention was an expected part of the regulatory process.
An ITV spokesperson said: “We welcome the publication of the secretary of state’s ‘minded to’ issue a public interest intervention notice letter as was expected and look forward to fully co-operating in the process.
“This is another important milestone in the regulatory review process towards creating a UK player with the scale and resources to better compete with global streaming platforms, benefiting viewers, advertisers and the UK creative industries.”
