Following a public interest test, the Radio Authority (RA) has decided that the proposed takeover of London alternative station XFM by Capital Radio will be allowed to go ahead (see Capital’s Xfm Move Dependent On Watchdogs).
The Authority has determined that the takeover would not be expected to operate against the public interest in terms of fair competition or diversity and range of output. However, the RA has made it clear to Capital that it will not accept anything other than very minor changes to Xfm’s promise of performance at this time, “in order to preserve the full range of programmes available in London.”
The test also states that: “Capital Radio will not engage in any conditional selling or predatory pricing of advertising or promotions in respect of either, or any combination of, Capital FM, Capital Gold and Xfm.” National and local news must also be produced separately for Xfm.
The RA sought public comment on the takeover and received 38 submissions by the closing date of 5 June 1998. The Department of Trade and Industry (DTI) has yet to publish the results of the Office of Fair Trading examination. The DTI will rule whether the deal would be fair on competition and ownership grounds; it is possible, though unlikely, that the takeover could be blocked by the DTI.
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