ISBA Concerned By OFT SMG Ruling

ISBA has registered concern with the Office of Fair Trading following a recent ruling to clear Scottish Media Group’s (SMG) acquisition of a 29.5% stake in Scottish Radio Holdings (SRH) (see Scottish Media Group Makes Further SRH Acquisition). ISBA is concerned in particular that the stake gives SMG power of veto over SRH, and consequently widespread influence in the Scottish media market.

In a letter to the Secretary of State for Trade and Industry, Patricia Hewitt, the ISBA director general Malcolm Earnshaw, wrote: “The Director General of Fair Trading’s report to you claims that the views of interested parties had been consulted. We challenge this as we were neither alerted nor consulted, despite our being well known to the OFT.”

He continued to point out that some ISBA members, especially those in the Scottish media, were concerned at the increase in regional sales power, but continued, “Our main concern is that this decision may set unwelcome precedents just at a time when we expect an imminent draft Communications Bill to set new parameters for ownership within and across media.”

Earnshaw went on to warn: “For consultation on matters as portentous as this to be handled in such a casual manner does not bode well for the interests of vested interest groups such as ourselves, let alone individual citizens and consumers.”

ISBA: 020 7499 7502 www.isba.org.uk

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