In a setback for 21st Century Fox, the UK’s Competition and Markets Authority (CMA) have said that the company’s proposed takeover of Sky in not in public interest on grounds of media plurality.
In a report published today, the CMA found that the Murdoch family would be given too much power over news providers in the UK, if the deal was to go through. However, it added that the takeover would not be against the grounds of broadcasting standards.
Anne Lambert, who led the Competition and Markets Authority’s investigation said, “it would result in the Murdoch family having too much control over news providers in the UK, and too much influence over public opinion and the political agenda”.
In response to this, Sky said it had noted the CMA’s findings and would be make a further announcement soon. However, it does look like that Sky News could be changed to seal the deal.
The £49 billion sale of Fox’s entertainment assets to Disney is expected to continue and not be impacted by today’s decision.