By: Luke
Telegraph: Ofcom Unlikely To Apply Public Interest Test
The Times reports:
“THE Barclay brothers are not expected to face a �public interest� regulatory test over their takeover of The Daily Telegraph, according to officials who would be responsible for leading such an inquiry.
Senior executives of Ofcom [Stephen Carter], the communication regulator, claim in private that they do not expect to be asked by Patricia Hewitt, Trade and Industry Secretary, to intervene in the �665 million takeover.
This means that clearance for a takeover of The Daily Telegraph by Sir David and Sir Frederick Barclay � representing one of the most expensive deals to buy a British newspaper � is a formality.”
However there may be dissension in the ranks at Riverside House - the article goes on to say:
“[N]ot everyone shares the view of [Stephen] Carter and other senior Ofcom staff.
Some members of Ofcom�s board feel that all big media takeovers should be subject to the public interest test, even where there are no obvious grounds for blocking a deal on that basis. The result would be to build up a body of information and precedent that would inform controversial cases.”
As the article points out the Secretary of State could still ask Ofcom to take a look at the outcome of the takeover. But it is unlikely that Patricia Hewitt will do so, implying that fewer media mergers than was anticipated under the rules in the Communications Act will be subject to a “public interest test”.
So, all the Barclays have to do now is satisfy the OFT that there are no competition issues that emerge with their ownership of the Telegraph. Their ownership of The Scotsman and The Business is not seen as significant enough to be a problem.
Personally, I think The Telegraph has already improved under the Barclay’s ownership - top stuff boys.
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