Consultation outcome

Consultation on updating the media mergers regime - government response

Updated 15 May 2025

1. Introduction

1.1 Background

This government is committed to a pluralistic media landscape, where citizens are able to access information from a range of sources in order to form opinions. The public’s ability to access a wide range of news, views and information about the world in which we live is central to the health of our democracy. In an age of mis- and disinformation, a trusted media, with accurate, fact-checked journalism that operates in the public interest, is more important than ever.

That is why the Enterprise Act 2002 (“EA 2002”) contains provisions allowing the Secretary of State to intervene in mergers involving newspaper and broadcasting enterprises which raise public interest considerations specified in the Act. Grounds for intervention in transactions involving newspapers are assessed against these public interest considerations: accurate presentation of news, free expression of opinion and plurality of views in newspapers.

The media landscape has changed significantly since the Enterprise Act became law more than 2 decades ago and we need to reflect the way news is increasingly accessed and consumed online. In its 2021 Statement on the Future of Media Plurality, Ofcom recommended that the Secretary of State should broaden the scope of the public interest considerations beyond print newspapers and broadcasters to capture a broader range of “news creators”, in order to reflect changes to news consumption.

We are of the view that expanding the scope of the regime to capture any entity that creates news, as Ofcom has suggested, could potentially bring into scope a very large number of media enterprises, posing a disproportionate burden on business, as well as on government and regulators, and may threaten the sustainability of a media landscape that is already facing a number of challenges.

The government therefore ran a technical consultation between 6 November 2024 and 13 January 2025 on a proposed approach to taking forward Ofcom’s recommendations to expand the scope of the media mergers regime from print newspapers and broadcasters to encompass online news publications and periodical news magazines, and to extend the application of the media public interest considerations. These proposals aim to ensure a proportionate approach that reflects the way in which news is consumed in the modern day, whilst avoiding bringing into scope additional entities that are less likely to pose public interest concerns.

The changes we are making will apply to the public interest media mergers regime, the special public interest media mergers regime, and the foreign state influence (FSI) regime.

We intend to implement these changes by making secondary legislation which amends the legislative framework which applies to media merger and FSI cases. In particular, we will rely on the powers in sections 44(11) and section 70G(1) and (4) EA 2002 to amend the definition of ‘newspaper’ and section 58(3) EA 2002 to amend the existing media public interest considerations.

1.2 What the consultation asked

The consultation sought views on:

Definitions

Respondents were asked whether they agreed with the proposed definitions relating to the definition of ‘newspaper’ which were set out in the consultation document. They were also asked whether the proposed definition of ‘newspaper’ meets our policy intention to exclude news aggregators (for example Apple News) and online intermediaries (for example Facebook, X).The definitions relate to other areas of the consultation as follows:

Updating the definition of newspapers in section 44 EA 2002

Broadening the scope of the public interest considerations in section 58(2A) and (2B) EA 2002 so that these tests now apply to a broader definition of newspapers and news programmes

Broadening scope of the public interest consideration in section 58(2C)(a) EA 2002 (plurality of persons with control) so that this consideration applies to mergers involving enterprises involved in newspapers or broadcasting

Public interest considerations

Respondents were also asked whether they agreed with our proposed changes to the public interest considerations. The consultation set out the proposed textual amendments we would make to the legislation. The proposals outlined were a broadening of the scope of the public interest consideration in section 58(2A) and (2B) of the Enterprise Act 2002 to include online news publications as well as news programmes, in addition to print newspapers; and a broadening of the scope of the public interest consideration in section 58(2C)(a) of the Enterprise Act 2002 so that this consideration applies to newspaper mergers as well as mergers involving broadcasters.

Impact on business and industry

The consultation also posed a range of questions aimed at helping DCMS to understand the potential impacts these amendments will have on UK businesses and the online news sector.

2. Responses to the consultation

Fourteen responses were received to the consultation. Views focused on the following key themes:

2.1 Definitions

Respondents generally recognised the need to update the definition of newspaper to make it more reflective of the way in which news is consumed today, given the consistent decline in the circulation of print newspapers.

Several respondents expressed related concerns on the breadth of the proposed definition of ‘newspapers’, which might create potential uncertainty as to the intended scope of the regime. Concerns focused around how meanings of individual words in the proposed drafting could be interpreted differently. For example, uncertainty over the meaning of words such as ‘incidental’, ‘wholly’ and ‘periodical’ and the fact they might create a low and unjustifiable threshold for intervention was flagged, as well as cautioning against creating slippage in the regime by using definitions that might permit overly subjective interpretations of whether news-related material is ‘incidental’.

Two respondents explicitly stated a desire for DCMS to provide updated statutory guidance to accompany the new regime, in order to provide further clarity on definitions.

2.2 News intermediaries

Multiple respondents agreed that our drafting of the definition of ‘newspapers’ meets our policy intention to exclude news aggregators and online intermediaries.

Several respondents queried this policy intention, advocating for the inclusion of online intermediaries in the regime. Responses included highlighting that it is outdated to suggest that online intermediaries do not have a form of ‘editorial control’ given their role in surfacing content and providing AI summaries. Reference was also made to the problem associated with a lack of plurality in the online intermediary space, unlike in the news website market, where there exists a great variety of choice for consumers (with only the BBC receiving a dominant amount of traffic).

2.3 Broadening the scope of the public interest considerations to apply to a broader definition of newspapers and news programmes

Two respondents welcomed this proposal. One referenced perceived media market concentration as evidence of the need to consider mergers which take place between newspapers and wider media organisations. Another respondent called the extension of the application of the public interest considerations beyond narrowly specified acquisitions, a necessary and overdue change.

Conversely, 1 respondent questioned the need to extend the public interest considerations, and the need for a media merger regime at all. Whilst they supported the definition of newspaper being amended in relation to the FSI regime, they claimed that broadening the scope of the ordinary public interest considerations would raise the prospect of government intervention in a wide array of ‘enterprise-to-enterprise’ mergers across sectors, with uncertainty over how they would be assessed.

2.4 Broadening the scope of the public interest consideration in section 58(2C)(a) EA 2002 (plurality of persons with control) to apply to mergers involving enterprises involved in newspapers or broadcasting

Three respondents commented on this. One respondent agreed with this change, highlighting that it would have a positive impact in ensuring that media owners who seek a greater level of influence have their plans subjected to proper scrutiny.

Two respondents considered this an unnecessary step given there is already a ‘plurality of views’ test in relation to newspapers. They suggested it would have a chilling effect on investment and on consolidation which is necessary for the survival of the sector. They argue that, for example, if the same person sought to purchase several different newspapers, but committed to maintaining separate editorial structures at each newspaper, then the plurality of views in the market would be unaffected, despite a single owner.

One of these respondents sought clarity over how these tests would be enforceable, and how the thresholds for ‘sufficiency’ of plurality will be measured. The other respondent said that the consultation failed to identify any shortcoming in the current patterns of media ownership. They also stated that introducing this change would deter potential investors in UK news media, claiming that it represents a government intention to intervene in any media merger involving persons of whom it does not approve.

2.5 Impact on investment in sector

Some respondents said that, taken together, they thought that the proposed changes would have the effect of stifling investment in the media sector.

One respondent pointed out that given online news publishing is still an expanding and ‘immature’ business, then it would be a barrier to entry if media entrepreneurs knew that any change of ownership would trigger an “expensive and time-consuming regulatory regime” designed for much better-established organisations. A different respondent raised the view that although English language online news content is increasingly global, there is no prospect of the UK being able to regulate all English language news content online when content is generated overseas by non-UK entities - despite remaining freely available in the UK.

2.6 Impact in relation to Foreign State Influence (FSI) exceptions

Two respondents queried the lack of discretion afforded to the Secretary of State when considering whether to issue a foreign state intervention notice (FSIN), suggesting that altering the power to leave the final decision to the Secretary of State’s’s discretion would make the regime more flexible and consistent with the operation of other similar regimes.

Four respondents raised concerns about the potential chilling effect on investment of bringing online news publications into scope of the core media mergers regime and the FSI regime, when there remains uncertainty surrounding the level of passive foreign state investment by foreign state owned investors permitted in newspaper mergers.

One respondent said that the changes to bring online news into scope should not happen before concluding the separate consultation on The Enterprise Act 2002 (Mergers Involving Newspaper Enterprises and Foreign Powers) Regulations 2024. This respondent suggested that the interaction of these different changes to the merger regimes could have a risk of unintended consequences for broadcast news providers, where they are part of a diversified business which also operates an online news publishing service. Without exceptions to the FSI regime, transactions involving any level of foreign state investment into the ultimate owner of that business would be blocked. A separate respondent pointed to differences between print newspapers and online news publishers, which the FSI regime should take into consideration, suggesting that UK-based digital online news content providers already face strong overseas competition from providers outside the ambit of the regime, and that potential investors might therefore be funnelled into overseas online titles.

3. Government response

Having taken the consultation responses into consideration, we have chosen to move forward with the policy and drafting of the definitions as outlined in the original consultation. We consider that our proposed changes balance the need to protect the public interest in a digital age with our responsibility to support a competitive and sustainable media environment. This section of the consultation response will contain our rationale for proceeding with the policy and drafting of definitions as set out, and outlines how we intend to provide further clarity on issues raised by consultees.

3.1 Definitions

We have consulted with Ofcom and the Competition and Markets Authority (CMA), and are content that the definitions are sufficiently clear and robust. We recognise respondents’ comments, however, and will provide more detail and clarity on definitions through updated statutory guidance^{[footnote 1]} on the operation of the media merger and foreign state influence regimes which we plan to publish later this year.

3.2 News intermediaries

We have considered representations made by consultees on this point. However, this consultation raised proposals linked to Ofcom’s original recommendations, which did not include news intermediaries. Including intermediaries in the regime could bring into scope a very large number of enterprises, which might pose a disproportionate burden on business as well as on the government and on regulators. Ofcom is looking into the role of online intermediaries as part of its Public Service Media Review, due to be published in summer 2025. It is therefore this government’s intention to keep this area under active review, pending any further recommendations from Ofcom or other developments in this area.

3.3 Widening the scope of the public interest considerations to apply to a broader definition of newspapers and news programmes

The media landscape has changed significantly since the Enterprise Act became law more than 2 decades ago, which has resulted in a clear change in the ways in which consumers source their news. For instance, Ofcom’s news consumption survey, published in September 2024, shows over two thirds (71%) of UK adults now access news online.

The Secretary of State is currently able to intervene in transactions involving print newspapers on the grounds that one or more of the following public interest considerations are relevant: the need for accurate presentation of news, the need for free expression of opinion, and the need for, to the extent that it is reasonable and practicable, a sufficient plurality of views in newspapers in each market in the United Kingdom or a part of the United Kingdom. We think it is right that this power is extended beyond traditional print newspapers to ensure it is up to date with the diverse media through which people increasingly access news.

The views we received in the consultation responses were balanced. We therefore believe that our proposed amendments to the breadth of the public interest considerations ensure a proportionate approach that reflects the way in which news is consumed in the modern day and the need to protect the freedom of the press as a cornerstone of democracy.

3.4 Broadening the scope of the public interest consideration in section 58(2C)(a) EA 2002 (plurality of persons with control) to apply to mergers involving enterprises involved in newspapers or broadcasting

We acknowledge the concerns expressed by some respondents on the challenge this could pose on consolidation in the sector. We are committed to supporting a financially sustainable press sector, recognising the financial challenges many in the sector have faced over recent years, and acknowledge the role that consolidation can play here. However, we consider this change is important to protect sufficient plurality of ownership across all media (relevant broadcasting and news markets) - given the importance of a varied news market in an age of mis- and dis-information. For example, it could be helpful to prevent a scenario where one person acquires control across a large number of newspapers, where this introduces a threat to a plural and thriving news media. This will therefore provide a further, discretionary opportunity for the Secretary of State to consider mergers where the existing public interest test on plurality of views is not engaged. As the lines between different forms of media blur, we believe this change is important to ensure clarity and uniformity concerning plurality of persons with control across all media enterprises in scope of the regime .

The Secretary of State’s powers under the public interest regime continue to be discretionary and there are a range of possible outcomes to any investigation which she may commence. In assessing an individual case, the Secretary of State will need to consider the facts of that case and the evidence at hand. The updated guidance on the operation of the regime will also provide clarity on the circumstances in which the Secretary of State may consider an intervention.

3.5 Impact on investment in sector

We agree that encouraging a range of investment in the sector is important and the government is committed to maintaining a thriving and pluralistic media landscape. However, this must be balanced with the public’s ability to access high quality news that they can trust as this is central to the health of our democracy.

As above, it is important to note that the Secretary of State’s powers under the media public interest regime are discretionary and there are a range of possible outcomes to any investigation which she may commence. In assessing an individual case, the Secretary of State will need to consider the facts of that case. We will provide further guidance later in the year on the operation of the media mergers regime. We therefore consider that these changes are proportionate, without posing undue pressure on businesses.

3.6 Impact in relation to Foreign State Influence (FSI) exceptions

This consultation concerns changes to the public interest and foreign state influence media merger regimes to modernise it and update the definition of newspaper. We recognise that the issue of exceptions to the FSI regime is closely linked, and acknowledge consultees’ desire for clarity on this issue. On 15 May 2025 we published our response to the separate consultation linked to exceptions to the FSI regime.

We will be amending the definition of newspaper for the purposes of the FSI regime with effect from the date this consultation response is published. This will mean that once the legislation comes into force, the Secretary of State will be required to intervene in online newspaper mergers which completed on or after the date or publication, or in arrangements to create an online newspaper merger which are in progress or in contemplation on that date, if the Secretary of State has reasonable grounds to suspect that the merger may have resulted, or that arrangements may result, in a foreign power acquiring control or influence over the the policy of the online news enterprise.

4. Questions

4.1 Background questions

Question 1: Which best applies to you:

• a. I am responding as an individual
• b. I am responding on behalf of an organisation

Question 2: Where do you live?

• a. England
• b. Northern Ireland
• c. Scotland
• d. Wales
• e. Other – please specify

Question 3: Please tell us the geographical area your organisation covers?

• a. United Kingdom
• b. Great Britain
• c. England
• d. Northern Ireland
• e. Scotland
• f. Wales
• g. Other – please specify

Question 4: What is the name of your organisations?

Question 5: Type of organisation

Are you (please select all that apply):

• a. A news organisation
• b. A broadcaster
• c. An industry body
• d. A regulator
• e. Other – please specify

Question 6: If you are a news organisation, what type of news does your business/organisation primarily produce?

Select up to 3 of the following options.

• a. Local news
• b. National news
• c. International news
• d. Political news
• e. Business news
• f. Technology news
• g. Science news
• h. Health news
• i. Entertainment news
• j. Sports news
• k. Other

If “other” please explain your answer.

Question 7: If you are a news organisation, do you operate online, in print, or via broadcast?

• a. Wholly online
• b. Wholly in print
• c. Wholly via broadcast (meaning television or radio)
• d. Any combination of the above

Question 8: If “d” is selected, please explain as best as you can how your organisation is split across online, print and/or broadcast news.**

Question 9: If applicable, how many people are currently employed by your business?

• a. 0 to 9
• b. 10 to 49
• c. 50 to 499
• d. 500+
• e. n/a

Question 10: If applicable, what is the revenue range of your business for the previous financial year?

• a. £0 to £9,999
• b. £10,000 to £49,999
• c. £50,000 to £249,999
• d. £250,000 to £999,999
• e. £1 million to £9.99 million
• f. £10 million to £99.99 million
• g. £100 million to £1 billion
• h. Greater than £1 billion

Question 11: To your knowledge, is there any foreign state influence or control of your organisation?

• a. Yes
• b. No

If yes, please explain your answer (meaning what degree of investment is there in your organisation from foreign states).

4.2 Definitions

Question 1: Do you agree with our proposed definitions as set out at 4.1?

• a. Yes
• b. No
• c. Neither agree nor disagree

Please explain your answer.

Question 2: Do you agree with our proposed definitions as set out at 4.2?

• a. Yes
• b. No
• c. Neither agree nor disagree

Please explain your answer.

Question 3: Do you agree that our definition of “newspapers” meets our policy intention to exclude news aggregators (for example Apple News) and online intermediaries (Facebook, X)?

• a. Yes
• b. No
• c. Neither agree nor disagree

Please explain your answer.

4.3 Public interest considerations

We are proposing a broadening of the scope of the public interest consideration in section 58(2A) and (2B) of the Enterprise Act 2002 to include online news publications as well as news programmes. We are also proposing to broaden the scope of the public interest consideration in section 58(2C)(a) of the Enterprise Act 2002 so that this consideration applies to mergers involving newspapers or broadcasters.

Question 1:  Do you agree with our proposed changes to the public interest considerations?

• a. Yes
• b. No
• c. Neither agree nor disagree

Please explain your answer.

4.4 Other considerations

Question 1: Is there any other policy change that we ought to consider in the media mergers, of foreign state newspapers space? 

• a. Yes
• b. No
• c. Neither agree nor disagree

Please explain your answer.

4.5 Impact on individual business

Question 1: Do you consider your business to be within scope of the proposed change which broadens the media merger and foreign state newspaper regimes to encompass online news publications?

• a. Yes
• b. No

If yes, please explain your answer.

Question 2: Did you consider your business to be within scope of the media merger and foreign state newspaper regimes prior to this proposed change?

• a. Yes
• b. No

If yes, please explain your answer.

Question 3: Following these proposed changes to the media merger and foreign state newspaper regimes, do you anticipate any additional familiarisation costs or transition costs for your business/organisation to adapt? If possible, please present your estimation in monetised values and over what time period.

• a. Yes
• b. No

Please explain your answer.

Question 4: If applicable, do you expect these proposed changes to the media merger and foreign state newspaper regimes to have an impact on your business over the next 10 years?

• a. Yes
• b. No
• c. I don’t know
• d. n/a

Please explain your answer.

Question 5: If yes, for your business what would you expect to be impacted from these changes to the media merger and foreign state newspaper regimes regime?

• a. Level of foreign investment
• b. Level of domestic investment
• c. Plurality of news/viewership within your business
• d. Staff costs
• e. Other

Please explain your answer.

Question 6: Given uncertainty over future plans, can you provide an estimate of the scale of each of the impacts you have listed above? If possible, please present your estimation in monetised values and over what time period.

Please explain your answer.

Question 7: Are there additional considerations we should be aware of on how these changes may impact your business/organisation?

• a. Yes
• b. No

If yes, please explain your answer.

4.6 Impact on online news sector

Question 1: Are you able to provide information on the number of UK-based businesses (of any size) in the online news sector?

• a. Yes
• b. No

Please explain your answer.

Question 2: Are you able to provide information on the number of existing or expected mergers that might be impacted by the changes to the media merger and foreign state newspaper regimes? If possible, please provide quantitative estimates or evidence to support your answer.

If yes, please explain your answer. 

Question 3: Are there additional considerations we should be aware of on how these changes may impact businesses/industry?

• a. Yes
• b. No

If yes, please explain your answer.

1. Existing guidance published in 2004 ↩