NUJ responds to competition regulator’s inquiry into Sky’s takeover of ITV
The NUJ has responded to a Competition and Markets Authority (CMA) inquiry into Sky’s acquisition of ITV, making clear concerns that the merger would significantly increase concentration of market power within the UK broadcasting sector.
The response - which was informed by the union’s Broadcasting Council and members at ITV -also highlights the need for the new owners to maintain ITV’s existing public service broadcast offering, including vital regional news coverage, and protect workers’ terms and conditions.
After months of talks, in July, Sky agreed a £1.6 billion deal to take over ITV’s Media & Entertainment division and create the UK’s biggest commercial broadcaster.
Reports suggest that the deal, which is subject to regulatory approval, would lead to a single company controlling more than 70% of the UK TV advertising market. The NUJ’s inquiry response warned that “such a prominent concentration of market power risks reducing competition and limiting choice for advertisers and audiences.”
The response added that the proposed takeover would represent a further concentration of ownership in an already highly concentrated market, running counter to NUJ policy. To safeguard media plurality, the union’s News Recovery Plan calls for a maximum market share for UK provision set at 25% across all platforms and on each of radio, television, newspapers and online.
The NUJ also highlighted the need for Sky to maintain ITV’s existing public service broadcast offering. Although assurances have been given publicly regarding the continuation of these commitments, mergers on this scale typically create commercial incentives that weaken investment, including in regional news. This is a part of the sector where competition is already lacking following years of decline. We have seen around 300 local papers close since 2005 and significant cuts to BBC Local Radio, with millions across the UK now living in news deserts.
The union also highlighted ITV members’ concerns about the implications of the proposed acquisition on jobs and terms and conditions, and the future of the organisation’s recognised trade union agreements.
Read the full response.