Draft Enterprise Act 2002 (Mergers Involving Newspaper Enterprises and Foreign Powers) Regulations 2025

MPs approved regulations on 2 July 2025 barring foreign states from acquiring controlling stakes in British newspapers and news periodicals, with the vote passing 338 to 79. The rules, introduced by the government under the Enterprise Act 2002, set a 15% threshold below which state-owned investment vehicles may hold shares in a UK newspaper enterprise without automatically triggering the new merger control regime. Labour and Labour-Co-operative MPs voted unanimously in favour; the Liberal Democrats provided the bulk of the opposition. The regulations matter because they put flesh on a legal framework created by the previous Conservative government through the Digital Markets, Competition and Consumers Act 2024, which amended the Enterprise Act 2002 to create a specific foreign state influence merger regime for UK newspapers and news periodicals. The practical effect is that any foreign state seeking to acquire a stake large enough to give it control or influence over a UK newspaper will face scrutiny under competition law. The 15% threshold is designed to leave room for legitimate investment by state-owned vehicles, such as sovereign wealth funds, without allowing a single foreign government to accumulate a position sufficient to direct editorial policy. Labour MPs backed the government without dissent. The Liberal Democrats, with 62 of their 72 MPs voting against, formed the core of the opposition, joined by Plaid Cymru, the DUP, the Greens, and most Conservatives who voted. The Conservative front bench indicated broad support for the policy goal while seeking reassurances. The Liberal Democrats argued the 15% threshold was too permissive. Notably, 116 Conservative MPs had no vote recorded, making the party's effective position difficult to read.