26th Feb 2007 14:18
Dept Trade & Industry26 February 2007 BRITISH SKY BROADCASTING / ITV In accordance with Section 44A of the Enterprise Act, Secretary of State forTrade and Industry, Alistair Darling, has today asked Ofcom to conduct aninitial investigation into British Sky Broadcasting Group's acquisition of a17.9% stake in ITV plc. This means Ofcom must provide advice to him by 27 Aprilon whether the case raises public interest concerns about the number ofdifferent owners of media enterprises. Alistair Darling said "I am today asking Ofcom to conduct an initialinvestigation into the public interest issues that may be raised by thistransaction and to report back to me". He went on to say "I wish to emphasise that this decision only means there willbe an initial investigation by Ofcom and is without prejudice to any decisions Itake subsequently on whether a fuller investigation by the CompetitionCommission may be necessary". The Office of Fair Trading (OFT) announced on 12 January 2007 its provisionalview that a relevant merger situation may have been created for the purposes ofthe Enterprise Act 2002 as a result of British Sky Broadcasting Group acquiringmaterial influence over ITV plc. The OFT will also report to the Secretary ofState on 27 April on this and other competition issues raised by thetransaction. Notes to editors 1. The full text of Alistair Darling's statement to Parliament on this matter is attached to this press notice along with a copy of the intervention notice and request to Ofcom. These documents will be made available on the DTI website shortly. 2. Section 42(2) of the Enterprise Act 2002 provides that the Secretary of State may intervene in mergers where he considers (i) there are reasonable grounds to suspect that a relevant merger situation may have been created and (ii) there are grounds to consider that a public interest consideration specified in Section 58 of the Enterprise Act may be relevant to a consideration of the merger. 3. Section 44 of the Enterprise Act, provides that, where the Secretary of State gives an intervention notice, the Office of Fair Trading must report to him on the competition effects of the transaction by such a date he may specify. Section 44A of the Enterprise Act provides that, where the Secretary of State gives an intervention notice in respect of a media public interest consideration, Ofcom must report to him on the public interest consideration specified. On receipt of these reports, the Secretary of State will consider whether to use his powers under section 45 of the Enterprise Act to make a reference to the Competition Commission. 4. The Secretary of State has asked the Office of Fair Trading and Ofcom to report to him by 27 April. The public interest consideration specified in the intervention notice is the one at Section 58(2C)(a) of the Enterprise Act. This is as follows: "58(2C)(a) the need, in relation to every different audience in the UnitedKingdom or in a particular area or locality of the UK, for there to be asufficient plurality of persons with control of the media enterprises servingthat audience." INTERVENTION NOTICE GIVEN PURSUANT TO SECTION 42 ENTERPRISE ACT 2002 Whereas the Secretary of State has reasonable grounds for suspecting that it isor may be the case that a relevant merger situation, as defined in section 23 ofthe Enterprise Act 2002 ("the Act"), has been created in that: (a) enterprises carried on by or under the control of British SkyBroadcasting Group plc ceased to be distinct from enterprises carried on by orunder control of ITV plc on 17th November 2006; and (b) the value of the turnover in the United Kingdom of the enterprise takenover exceeds £70 million; Whereas the Secretary of State believes that it is or may be the case that themedia public interest consideration specified in section 58(2C)(a) of the Actmay be relevant to a consideration of the relevant merger situation concerned; Now, therefore, the Secretary of State in exercise of his powers under section42(2) of the Act, hereby gives this intervention notice to the Office of FairTrading and requires it to investigate and report in accordance with section 44of the Act within the period ending on 27 April 2007. REQUEST TO OFCOM TO PRODUCE A REPORT PURSUANT TO SECTION 44A ENTERPRISE ACT 2002 Whereas the Secretary of State has reasonable grounds for suspecting that it isor may be the case that a relevant merger situation, as defined in section 23 ofthe Enterprise Act 2002 ("the Act"), has been created in that: (a) enterprises carried on by or under the control of British Sky BroadcastingGroup plc ceased to be distinct from enterprises carried on by or under controlof ITV plc on 17th November 2006; and (b) the value of the turnover in the United Kingdom of the enterprise taken overexceeds £70 million; Whereas, the Secretary of State, in exercise of his powers under section 42(2)of the Act, has today issued an intervention notice to the Office of FairTrading requiring it to investigate and report in accordance with section 44 ofthe Act within the period ending on 27 April 2007; Whereas, the intervention notice has mentioned that the media public interestconsideration specified in section 58(2C)(a) of the Act may be relevant to aconsideration of the relevant merger situation concerned; Now, therefore, the Secretary of State, in exercise of his powers under section44A of the Act, requests OFCOM to investigate and report in accordance withsection 44A of the Act within the period ending on 27 April 2007. Department of Trade and Industry 7th Floor 1 Victoria Street London SW1H 0ET Press Enquiries +44 (0)20 7215 5964/5969 (Out of Hours) +44 (0)20 7215 3234/3505 Public Enquiries +44 (0)20 7215 5000 Textphone +44 (0)20 7215 6740 (for those with hearing impairment) Press Office Fax +44 (0)20 7222 4382 www.dti.gov.uk This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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