Culture Secretary Lisa Nandy is considering intervening in Sky's £1.6bn acquisition of ITV's media division, citing concerns over news plurality and on-demand programming variety.
UK Culture Secretary Lisa Nandy has stated she is "minded to intervene" in the proposed £1.6bn deal for Sky to acquire ITV's media and entertainment division. In a letter to both companies, Nandy indicated there were reasonable grounds to believe the transaction could affect free expression in the media and the variety of Britain's news landscape.
Nandy is considering issuing a public interest intervention notice (PIIN) to the Competition and Markets Authority (CMA) and regulator Ofcom. This would force an investigation into the tie-up based on several public interest considerations, including the need for free expression of opinion in news media, a range of views in news media across the UK, and a range of people controlling the media across the UK.
The letter noted that Sky News and ITV News are two of the most prominent sources of television news in the UK, holding a joint 26% share of those viewing news on linear TV. While consumers would still have access to other sources such as the BBC and Channel 4, Nandy believes the tie-up could undermine the range of views available over time. The letter argued that 86% of the linear TV news market would be controlled by the BBC and Sky/ITV combined.
According to the letter, the North of England, nations of the UK other than England, and those from lower socio-economic backgrounds could be particularly affected. This is because their main source of news is broadcast news.
Nandy’s potential intervention also rests on a new public interest consideration regarding on-demand programming. Current laws do not cover the effect of a merger on streaming or on-demand programmes. Nandy stated she would bring forward legislation to extend the application of public interest considerations to these platforms if she decides to intervene.
"If I decide to intervene on the basis of this new public interest consideration, I will bring forward legislation... to extend the application of the public interest consideration relating to the availability of a wide range of broadcasting to on-demand programmes," Nandy said.
The proposed deal, announced in July, involves Sky buying ITV's broadcasting business, including its free-to-air TV channels and the ITV X streaming service. It does not include ITV's production arm, ITV Studios, which produces programmes such as Love Island and I'm a Celebrity... Get Me Out of Here.
Sky and ITV have been given until 20 October to respond to the culture secretary's concerns. A Sky spokesperson said the company would "carefully consider" the letter and "engage constructively" with the review. "We remain confident that bringing Sky and ITV's media and entertainment business together will create a stronger British media," the spokesperson said. Sky also noted it has made commitments to protect ITV's identity, free-to-air services, and public service broadcasting obligations, ensuring ITV News and Sky News remain distinct editorial voices.
An ITV spokesperson welcomed the letter, stating it was expected and that the company looks forward to fully co-operating in the process. "This is another important milestone in the regulatory review process towards creating a UK player with the scale and resources to better compete with global streaming platforms, benefiting viewers, advertisers and the UK creative industries," the spokesperson said.
The potential intervention marks a significant regulatory hurdle for a deal intended to create a larger UK media entity capable of competing with global streaming giants like Netflix. If Nandy proceeds with the intervention, it would trigger formal investigations by Ofcom and the CMA, potentially delaying or altering the terms of the acquisition. The move also highlights the UK government's intent to update media regulation to address the growing influence of on-demand and streaming services on public interest standards.
Sources
This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.
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