Two of the UK’s highest regulatory bodies, the Competition and Markets Authority (CMA) and OFCOM, are set to investigate the looming takeover of free-to-air commercial network ITV by pay-TV giant Sky.
Sky confirmed its £1.6 billion ($2.1 billion) offer to buy ITV Media & Entertainment had been accepted back in July, but now Lisa Nandy, the secretary of state for Digital, Culture, Media and Sport (DCMS), has called on the two bodies to probe whether or not the takeover will negatively impact free speech in news media, and competition in broadcast and digital media.
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The DCMS issued a public interest intervention notice, prompting the two to examine the takeover, with the results of the investigations to be returned by January 27.
Nandy said she had “specific concerns about the deal that may also prompt her to bring forward streaming-specific legislation in the coming months.
In particular, she stated: “The legislation already specifies a public interest consideration on the need for the availability, throughout the UK, of a wide range of broadcasting which is both of high quality and calculated to appeal to a wide variety of tastes and interests.
“As I explained in my written statement dated 15 October, I believe that this consideration should be modified to apply to on-demand programmes as well as broadcasting in line with modern viewing habits and my specific concerns regarding this merger.”
In July, Comcast-owned Sky said that the transaction aims to create a UK-focused streaming giant to compete with major players in the space, such as Netflix and Amazon Prime Video.
According to Sky's chief executive, Dana Strong, the integrated streaming platform will have over 16 million viewers every month.
Following completion, ITV channels and ITVX will remain free-to-air, with its public service broadcasting commitments "continuing to be met in full." It is that commitment that Sky believes will help it pass any public inquiry.
In terms of sports rights, most prominently, Sky holds the largest chunk of domestic rights to English soccer's Premier League, while it is also the main UK broadcaster for properties such as motor racing's Formula 1, the NFL, the home English cricket season, and golf's Ryder Cup.
ITV, meanwhile, shares rights to major international soccer tournaments (including the men's and women's FIFA World Cup) with the BBC public broadcaster, while it also covers a diverse range of properties from sports such as rugby, cycling, electric motor racing, horse racing, and darts.
