OFT seeks initial views on review into local and regional media merger regime

14/09 13 February 2009

The OFT is today seeking views from interested stakeholders on the main scope of its review into the local and regional media sector.

In its recent Digital Britain Interim Report, the Government invited the OFT, together with Ofcom and other interested parties, to look into whether any change is needed in the merger regime regarding local and regional media – with a particular focus on print media.

Amelia Fletcher, Senior Director of Mergers, 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.'

The Government has informed the OFT that it would find it particularly helpful if the following issues could be considered when looking at the scope of the review:

the extent to which print markets are any longer self contained either in relation to advertisers or to readership and the implications for market definitions
the extent to which public service broadcasting, local authorities and other public sector news and local information services, whether or not funded by advertising, constitute competition to commercial local media services
the potential for clear guidance to be available to industry on how cases would be approached by the OFT and Competition Commission including, where appropriate, guidance on the factual and economic evidence likely to be relevant to referral decisions
the need for informal advice in relation to specific cases, and
the extent to which the public interest considerations remain appropriate; and specifically whether the requirement for a sufficient plurality of views in newspapers in each market for newspapers in the UK is realistic or desirable in the digital age.

All stakeholders wishing to submit initial comments on the key issues relevant to the scope of the review should respond by the 28 February 2009 to Ian Windle, 9C/12, Office of Fair Trading, Fleetbank House, 2-6 Salisbury Square, London EC4Y 8JX
Tel: 020 7211 5864 or localmediareview@oft.gsi.gov.uk

Following this, interested parties will also have the chance to respond to a full discussion document on the Review which will be issued in mid-March. The OFT plans to complete the review by mid-April, and submit findings to Government to fit the timescale for the publication of the final Digital Britain Report which is due early summer 2009.

NOTES

1. In light of the cross-departmental responsibilities which exist in the application of the media merger regime, there will be a Steering Group for the review comprising senior officials from the OFT, Ofcom, the Competition Commission, and the Department for Business Enterprise and Regulatory Reform (BERR).

2. At the conclusion of its review, the OFT will report on the operation of the existing media merger regime to inform whether any changes to the regime may be desirable or necessary. Reflecting the exploratory nature of the review, the report may include recommendations for further work to be undertaken in this area.

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