Culture secretary Lisa Nandy has formally intervened in Sky’s £1.6bn takeover of ITV’s broadcasting business after raising concerns over its impact on media competition and the diversity of British news.
Nandy confirmed on Wednesday that she had issued a Public Interest Intervention Notice (PIIN), instructing the Competition and Markets Authority (CMA) and media regulator Ofcom to look into the proposed deal.
Both watchdogs have until 27 January to report their findings, after which Nandy will decide whether to order a more detailed investigation.
“Having fully considered their representations, I have decided to issue a Public Interest Intervention Notice”, Nandy said.
It follows her warning last month that the merger could threaten freedom of expression and the diversity of views in news media.
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SUBSCRIBE HERENandy also confirmed plans to extend existing media merger legislation to cover streaming services, bringing on-demand platforms under the same considerations as traditional broadcasting.
Sky and ITV face regulatory scrutiny
The proposed acquisition would see Sky take control of ITV’s Media and Entertainment division, including its TV channels and streaming platform ITVX.
ITV Studios, the production business behind shows like Love Island, has been excluded from the deal.
The companies have said that the merger would create a stronger British broadcasting business capable of competing with global streaming giants including Netflix and Disney+.
They expect around £200m in annual cost savings, largely through combining marketing and tech operations.
Sky has pledged to protect ITV’s free-to-air services and public-service broadcasting obligations, while keeping ITV News and Sky News editorially separate.