Advertisers welcome competition enquiry over radio ownership

News that the Competition Commission (CC) is to investigate the completed acquisition by Global Radio of Real and Smooth Radio (formerly GMG Radio) has been welcomed by Bob Wootton, ISBA Director of Media. The merger is to be evaluated on competition grounds only, as Culture Secretary Maria Miller has cleared the deal on plurality grounds.

Following an intervention notice issued by the Secretary of State, broadcasting regulator Ofcom and the Office of Fair Trading (OFT) both submitted reports on the impact of the deal at the end of September. Ofcom’s report was based on media plurality issues, the OFT report on competition issues.

The OFT has now referred the case to the CC, which will decide whether the acquisition may be expected to result in a substantial lessening of competition in the market. Ofcom has already concluded that it does not consider the deal to operate against the public interest.

ISBA was one of a number of parties which expressed concerns over lessening competition, and therefore welcomes the referral to the CC.

Bob Wootton, ISBA Director of Media & Advertising, said: “Global Radio’s acquisition of GMG’s radio assets raises some further concerns about media ownership concentration and the possible leverage of undue dominance which can arise. We therefore welcome the OFT’s referral to the Competition Commission and will be submitting our member’ views to their inquiry.”