Committee publication · Correspondence · 20 May 2025
Letter from Rt Hon Lisa Nandy MP, Secretary of State for Culture, Media and Sport, regarding changes to media mergers legislation, dated 15 May 2025
From: Culture, Media and Sport Committee
Inquiry: The work of the Department for Culture, Media and Sport
Summary
Secretary of State Lisa Nandy updates the Culture, Media and Sport Committee on two consultation responses regarding changes to media mergers legislation. The government is introducing exceptions to the Foreign State Influence regime (setting a 15% threshold for state-owned investor holdings) and expanding the public interest media merger regime to cover online news publications, periodical magazines, and broadcast news programmes—reflecting how 71% of UK adults now consume online news.
Key findings
- Foreign State Influence regime: 15% threshold set for state-owned investor holdings, below the 25% 'material influence' benchmark, balancing investment protection with safeguarding against foreign state control.
- Public interest regime expanded to encompass online news publications, periodical news magazines, and broadcast news programmes—closing a regulatory gap where Secretary of State currently lacks intervention powers.
- Public interest considerations (accurate news presentation, free expression of opinion, media plurality) will now apply to online and periodical publications in addition to print newspapers.
- Amendments to FSI regime definitions apply retrospectively from announcement date; Secretary of State must intervene in mergers involving online news enterprises where foreign state control is suspected.
- Government framing: changes reflect digital-age news consumption patterns (71% of adults consume online news) while maintaining proportionate regulation avoiding overreach to less-risky organisations.
Tone
ProceduralTopics
Key actors
Lisa Nandy MP, Caroline Dinenage MP, Competition and Markets Authority (CMA), Ofcom, Department for Culture, Media and Sport
Notable line
“We have opted for a 15% threshold which is below the "material influence" threshold of 25% typically used by the CMA to determine whether …”
Key Quotes
“These changes balance the need to protect the public interest in a digital age with our responsibility to support a competitive and sustainable media environment.”
“We have opted for a 15% threshold which is below the "material influence" threshold of 25% typically used by the CMA to determine whether an acquisition triggers a merger review on competition grounds.”
“Our policy intention is to ensure that investments by state-owned investment vehicles which are permitted by the exception do not result in a foreign power having the ability to control or influence over the policies of a UK newspaper.”
“By expanding both the public interest and foreign state influence regimes, this will close an important gap in regulation, as I do not currently have the powers to intervene in the purchases of online news publications.”
“According to Ofcom's annual report on news consumption in the UK, 71% of UK adults say they consume online news in some capacity.”
Source · parliament.uk record ↗