Government Pledges to Prevent Foreign Acquisition of British News Organizations Following Telegraph Merger
New legislation is being proposed to prevent foreign states from gaining influence or control over British newspapers and news magazines through mergers.
The government has pledged to introduce this new law following reports from communications and competition watchdogs regarding a potential UAE takeover of the Telegraph titles.
During a debate on the Digital Markets, Competition, and Consumers Bill, Minister Lord Parkinson of Whitley Bay announced that an amendment will be added to the media merger regime to explicitly prohibit foreign states from owning, influencing, or controlling British newspapers and periodicals.
Under the proposed plan, if the culture secretary suspects that a merger involving a UK newspaper or news magazine would result in foreign state control, an intervention notice must be issued to the Competition and Markets Authority for investigation.
If the CMA confirms the suspicion, the minister will be required to block or undo the merger.
The definition of “foreign powers” will also be expanded to include private investments by foreign government entities, but the ban will not apply to broadcasters or digital media.
In response to concerns about foreign states owning minority stakes, which could still provide control, the minister assured that secondary legislation will outline restrictions on foreign investment funds and thresholds for ownership.
The proposed law coincides with the possible takeover of The Daily Telegraph, The Sunday Telegraph, and The Spectator magazine by RedBird IMI, backed by Sheikh Mansour bin Zayed al-Nahyan of the UAE.
The Culture Secretary is currently deciding whether to intervene in the merger and has received reports from Ofcom and CMA.
If the new legislation is enacted, it will work alongside existing public interest regulations to oversee foreign takeovers of UK media organizations.
The government’s initiative follows calls from MPs and peers for parliamentary oversight over foreign acquisitions of news media in the UK, highlighting the importance of safeguarding British media independence.
Baroness Stowell’s proposed amendment was withdrawn in favor of the government’s plan but may be reintroduced if necessary.
