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Sky deal could be referred to competition authority

R. Murdoch’s probable Sky takeover may first be examined by the Competition Authority through the period of 6 months following the culture secretary statement that worries over the £11.7 bln deal require some additional investigation.

The words of K. Bradley directed to the parliament were that she was asked to refer the deal to the special body mindful of media plurality and broadcasting standards. The first part of the statement had been on the cards but the second part of it came quite unexpectedly.

Sky shares went down following the news. Her view of the bargain in the beginning of this summer was to refer it only on media plurality, when Ofcom voiced its concern over the possibility of dominant position of Murdochs in the social life in case they possess Sky. But as of late pressure has been mounting for the deal to be referred invoking the issue of broadcasting standards.

Among the initiators were Avaaz group and a number of widely-known members of parliament with Ed Miliband in the lead, they said they would start a judicial review if culture secretary did not refer the bargain to the Competition and Markets Authority on broadcasting standards. Murdoch and his sons are now in control of 21st Century Fox, which attempts to purchase 61% of Sky.

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