Minister Contemplates Investigation into Telegraph Sale following Ofcom’s Concerns
The watchdog has informed Culture Secretary Lucy Frazer that the proposed merger could go against the public interest.
Culture Secretary Lucy Frazer is contemplating further action following concerns raised by Ofcom over the potential takeover of the Telegraph Media Group by a United Arab Emirates (UAE)-backed entity, as stated by the minister on Tuesday.
Ofcom has cautioned that the intended merger might not align with the public interest in terms of truthful news reporting and freedom of expression.
In letters to the parties involved in the proposed merger, Ms. Frazer indicated her intention to refer the deal for a Phase 2 investigation.
The parties have been given a week to respond before the culture secretary’s final decision.
Late last year, RedBird IMI, a fund backed by Abu Dhabi, reached an agreement with the previous owners of the Telegraph to acquire the newspaper group and The Spectator by settling debts owed to Lloyds Bank.
RedBird IMI is predominantly owned by Sheikh Mansour bin Zayed Al Nahyan, the vice president of the UAE and the owner of Manchester City Football Club.
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Following the initial announcement of the deal, the government triggered an investigation through a Public Interest Intervention Notice to examine its potential impact on press freedom.
In January, the culture secretary had to intervene again due to changes in the proposed owner’s corporate structure for the takeover.
By March 11, Ofcom and the Competition and Markets Authority (CMA) had submitted their reports to the culture secretary.
The CMA informed Ms. Frazer that they do not anticipate significant competition concerns resulting from the proposed merger in the UK for goods or services.
“In particular, they believe that International Media Investments (IMI), a majority partner in RB Investco’s parent company, might have an incentive to influence the Telegraph Media Group in a way that could potentially harm the public interest by affecting news accuracy and expression of opinions in the Daily Telegraph and the Sunday Telegraph newspapers,” she stated.
The minister intends to publish the reports from the watchdogs in due course.
She also expressed her inclination to refer the merger for a Phase 2 investigation based on the necessity for accurate news presentation and freedom of expression in newspapers.
Before making a final decision on a referral, Ms. Frazer is required by law to allow the parties to provide their perspectives.
In letters dated March 18 and made public on Tuesday, Ms. Frazer gave the parties until 9 a.m. on March 25 to respond.
Simultaneously, the public interest probe is part of the government’s initiative to prevent foreign entities from controlling British newspapers and magazines.
These new regulations are expected to be included as an amendment to the Digital Markets, Competition, and Consumers Bill during its third reading.
During an appearance on ITV’s “Good Morning Britain” programme, Ms. Frazer dismissed claims of a “double standard” in allowing Mr. Al Nahyan to own Manchester City but not The Telegraph.
She emphasized the importance of a free press in the UK, stating that it is inappropriate for the UK government or a foreign state to own a newspaper, while still welcoming foreign investment in other areas like football.
She concluded by stating, “They’re totally different.”
PA Media contributed to this report.
