Rupert Murdoch’s bid to take full control of Sky has been provisionally blocked by the competition regulator.
The Competition & Markets Authority (CMA) said some aspects the £11.7bn deal were “not in the public interest” following the provisional findings from its in-depth examination of the proposed acquisition of Sky Plc by 21st Century Fox.
In a statement, the CMA said if the Murdoch family – which controls Fox and News Corp, and publishes the Sun and The Times – was able to increase its control over Sky, it would have too much control over news providers in the UK.
The CMA said this would wield “too much influence over public opinion and the political agenda”.
However, on the separate issue of ‘commitment to broadcasting standards’ in the UK, The CMA said that Fox taking full control of Sky is not likely to operate against the public interest.
Responding to the news, Fox said it was “disappointed” by the CMA’s findings. “We will continue to engage with the CMA ahead of the publication of the final report in May,” the company said.
Meanwhile, the former Labour leader Ed Miliband said it was a landmark finding. “The Sky deal would give the Murdochs too much power. Finally a regulator says no to the Murdochs.”
Last month Fox announced the sale of the majority of its entertainment assets, including its 39% stake in Sky, to Disney.
However, the £49bn deal is unlikely to be completed until after Fox takes full control of Sky.
The Murdochs will now have time to address the issues in today’s finsings before the CMS publishes its final report in May 2018.
