The key facts
- Lisa Nandy is 'minded to intervene' in the £1.6bn ($2.1bn) Sky–ITV deal; Ofcom and CMA reviews could be launched
- The deal does not include ITV Studios; Sky has pledged to preserve ITV's identity and separate ITV News and Sky News editorial operations
- New legislation may be needed to assess the impact on streaming services; the companies' responses are expected by 20 October
Possible government intervention
UK Culture Secretary Lisa Nandy said she is 'minded to intervene' in the proposed deal for Sky to buy ITV's media and entertainment division for £1.6bn (about $2.1bn). In a written statement to parliament and letters to both companies, she said she is considering issuing a public interest intervention notice (PIIN), which would require regulator Ofcom and the Competition and Markets Authority (CMA) to conduct an investigation. According to Anadolu, if the notice is issued, Ofcom would assess the deal's consequences for the public interest and the CMA its impact on competition, after which Nandy would decide whether a more detailed investigation is needed. No final decision has yet been made.
Rationale: news pluralism
Nandy indicated there are reasonable grounds to believe the deal could affect freedom of expression in the media and the diversity of the news landscape. Among the public interests named are: freedom of expression in news media, the range of views and the circle of persons controlling media across the country, and a wide choice of programming. The letter notes that Sky News and ITV News are among the most prominent sources of television news, with a combined 26% share among linear TV viewers, and together with the BBC they control 86% of the linear TV news market. In the minister's view, over time the deal could reduce the diversity of views; northern England, the other nations of the UK, and people from lower socio-economic groups, for whom broadcast TV is the main news source, could be particularly vulnerable.
The deal itself
Sky, owned by the American company Comcast, agreed to buy ITV's media and entertainment business, including its terrestrial TV channels and the ITVX streaming service. The deal, announced on 6 July, does not affect the production division ITV Studios, which makes shows such as Love Island and I'm a Celebrity... Get Me Out of Here. According to Sky, the combined company would account for about 20% of all domestic viewing in the UK. The deal is meant to give Sky access to millions of new viewers and, in the leadership's plan, help both companies compete with streaming giants like Netflix.
The companies' reaction
Sky said it would 'carefully consider' the minister's letter and would 'engage constructively' with the review: 'We remain confident that combining Sky and ITV's media and entertainment business will create stronger British media.' A Sky spokesperson added that the company has already given commitments to protect ITV's identity, its terrestrial services and public broadcasting obligations, as well as to ensure separate editorial voices for ITV News and Sky News. ITV, for its part, welcomed the letter, calling it an expected stage of the regulatory process, and said the deal would create a British player able to 'compete with global streaming platforms for the benefit of viewers, advertisers and the UK's creative industries'.
Legal aspect and timeline
According to Nandy, the intervention would be based on a new public interest: current legislation does not cover the impact of mergers on streaming and on-demand programming. She said that if she decides to intervene on this basis, she would introduce legislation extending the rules on the availability of a wide range of broadcasting to on-demand programmes. Sky and ITV must submit written responses to the minister's remarks by 20 October.
Image source, Getty Images
