OFT launches local media ownership review
The Office of Fair Trading has launched its review in to local and regional media ownership, with a focus on whether existing rules should be relaxed to help the struggling newspaper industry.
Lord Carter’s Digital Britain report, which was published last month (see Broadband for all by 2012), promised a review of local ownership rules and regulators have already begun by asking views from stakeholders, according to reports.
The OFT has confirmed that the main focus will be on print media, looking at areas such as the extent to which regional newspaper markets are self contained either in relation to advertisers or readership, and the extent to which PSBs, local authorities and other public bodies that provide news are in competition with local commercial media companies.
Competition regulators will also be looking at whether the requirement for sufficient plurality of views in the press in each market in the UK is realistic or simply desirable in the digital age.
If the OFT recommends a relaxation of ownership rules, there will be more room for consolidation in regional print, and newspaper publishers will have the opportunity to buy more local radio stations.
Amelia Fletcher, senior director of mergers at the OFT, said: “Local and regional media is an important part of the economy, which is currently subject to a range of pressures.
“Initially we are asking for views on the key issues the review should focus on. Following this we will engage in detail on how the current media merger regime is operating in both protecting competition for relevant audiences and advertisers, and maintaining media plurality,” she added.
The review will be overseen by a group of senior officials from the OFT, Ofcom, the Competition Commission and the Department for Business Enterprise and Regulatory Reform.
The timescale for the review will stretch over the next few months, with an initial discussion document issued in mid-March before the final review is published in mid-April.
The OFT plans to submit the findings to the Government ahead of Lord Carter’s final Digital Britain Report, which is due in the summer.
Office of Fair Trading: www.oft.gov.uk