Sky’s planned takeover of ITV’s channels and streaming arm has been referred to the UK’s competition and media watchdogs for review.
Officials working for Culture Secretary Lisa Nandy have written to both firms setting out her reasons for asking the Competition and Markets Authority and Ofcom to look at the transaction’s impact on the UK media market and news plurality.
These include the fact that the deal could bring “60% of the viewing share of live linear sports under a single commercial owner” and concerns that ITV’s public service broadcasting output could be diminished by its “absorption” into a “primarily subscription led business.”
Both companies have previously set out their commitments to ensuring viewers continue to have access to ITV’s content free to air and have also suggested that some Sky’s content could get second showings on the ITV channels.
However in today’s letter, Nandy’s officials say: “While you offer reassuring detail in your representations, these statements remain voluntary public commitments and the Secretary of State has decided not to rely on them to the extent of concluding that regulatory scrutiny is not needed in this case.”
The CMA and Ofcom will now embark on their respective reviews and must report back to Nandy by January 27th.