Culture Secretary Lisa Nandy has formally intervened in Sky's £1.6 billion deal to acquire ITV's media and entertainment arm, citing public interest concerns.
Ms Nandy issued a Public Interest Intervention Notice, which allows the Competition and Markets Authority (CMA) and Ofcom to investigate the takeover and report back on its impact on media plurality in the UK and free speech by January 27.
New Streaming Legislation Planned
Ms Nandy said she will bring forward new streaming legislation in light of her "specific concerns" over the tie-up.
Following reports from the CMA and Ofcom, she may decide to refer the deal for a further in-depth investigation.
Ms Nandy had already said last month she was "minded to intervene" on public interest grounds.
Statement on Public Interest
She said: "The legislation already specifies a public interest consideration on the need for the availability, throughout the UK, of a wide range of broadcasting which is both of high quality and calculated to appeal to a wide variety of tastes and interests."
She added: "As I explained in my written statement dated 15 October, I believe that this consideration should be modified to apply to on-demand programmes as well as broadcasting in line with modern viewing habits and my specific concerns regarding this merger."
Deal Details and Response
ITV agreed in July to sell its media and entertainment division to Sky, a move that would create a major competitor to global streaming giants.
The sale includes ITV's terrestrial TV channels and streaming service ITVX but excludes its production arm, ITV Studios, which produces shows including I'm A Celebrity and dramas such as Mr Bates Vs The Post Office.
A Sky spokesperson said: "Bringing Sky and ITV Media & Entertainment together will create a stronger British media business, better equipped to compete with global streamers, support British content and deliver more for viewers."
The spokesperson added: "We believe the transaction is in the public interest, with clear commitments already made to protect ITV's identity, public service broadcasting obligations and the distinct editorial voices of Sky News and ITV News."
