Ofcom guidance criticised for stifling media mergers

LONDON - Richard Desmond's plans to bid for the Daily Telegraph could be blocked, according to Ofcom documents published yesterday that spell out information the regulator will require when deciding whether media mergers are in the public interest.

Ofcom has announced that not only will it need to know about circulation and market share, but it will also want to know detailed information about content. Some media commentators have criticised the "mountain of red tape" and claimed that the system would make media mergers more difficult rather than easier as promised.

According to the Ofcom documents published yesterday, bidders would have to supply "assessment of column inches dedicated to advertising, regional/local stories, sport, human-interest stories, features, etc". Similar detail is required of TV and radio mergers.

Ofcom also made it clear that it would want to know all about "the employment history of the acquiring owner, including newspaper and media-related employment".

Some commentators have speculated that this provision could be used to look at Desmond's involvement in publishing pornographic magazines.

Trade and industry secretary Patricia Hewitt has the power to intervene in media mergers if she believes that they are not in the public interest, which could potentially harm UK media acquisitions. However, Ofcom can only make recommendations to the secretary of state and does not have the power to block mergers.

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