Media Ownership and Control: A European Approach

Abstract

Towards the end of 1992 and throughout 1993, companies in the United Kingdom associated with press and broadcasting activities campaigned for changes to the media ownership and control rules. In particular, many of the media companies wanted to see a relaxation of the rules preventing mergers between those Channel 3 licensees which operated in the larger regions. One of the reasons for the advocacy of change was the fear that media companies from other European Community countries, such as Italian Berlusconi's Fininvest and German Bertelsmann, unhindered by UK ownership and control restrictions, would be able to step in and bid for these companies.2 At the same time, pressure was also being felt from the newspaper companies for a relaxation of the cross-media ownership rules.3 The outcome of this campaigning was that on 1 January 1994 the Broadcasting (Restrictions on the Holding of Licences) (Amendment) Order 1993 came into force.4 This order allowed licensees in the larger regions to hold licences in the other larger regions.5 However, the rule that a company holding a regional Channel 3 licence is restricted to one other regional Channel 3 licence was not amended despite suggestions that it should be liberalised.6 In addition, the National Heritage Secretary, Peter Brooke, announced a review of the rules relating to cross-media ownership. Curiously, although much of the impetus for the pressure being applied to the Government was the result of anticipation of what other European media companies might do in the UK market, public discussion and debate was conducted entirely without reference to a recent European Commission assessment of the need for Community regulation in this area.7 At the end of 1992 the European Commission published a Green Paper, Pluralism and Media Concentration in the Internal Market: An Assessment of the Need for Community Action.8 The purpose of the Green Paper was to analyse the issue of concentration in the media (television, radio and press) and the need for action, and to suggest possible courses of action. Since the publication of the Green Paper, the Commission has instigated a wide consultation process. Initial responses have