Fox Defends Sky Deal to UK Competition and Markets Authority
Fox's planned buy of Sky wouldn't bring news providers "under common material influence" because it doesn't affect either the ownership or degree of control the Murdoch Family Trust has over Fox or News Corp., Fox said in a submission Tuesday…
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to UK's Competition and Markets Authority (CMA). It said the deal isn't a full combination of Fox, Sky and News Corp., since the affected Sky News and News Corp. news outlets would stay under the ownership of separate companies -- Fox and News Corp. -- with separate, majority independent boards. Fox said there can't be an adverse finding unless CMA concludes the transaction would lead to insufficient plurality, but the rise of online news sources and intermediaries has resulted in big pluralities in the news market. Fox said the alleged Murdoch Family Trust influence isn't a basis for finding insufficient plurality because increased influence isn't the same as insufficient plurality and there's no reason to believe the deal would materially enhance the Murdochs' influence over the news agenda. U.K. Secretary of State for Culture, Media and Sport Karen Bradley last month referred Fox/Sky to CMA for a full, six-month investigation (see 1709140020). CMA said provisional findings are due in December.