The UK government is set to introduce legislation banning foreign state ownership of British news organisations in response to concerns over the attempted takeover of The Telegraph by a UAE-backed fund.
The proposed amendment to the Digital Markets Bill, expected to be announced by Culture Minister Lord Parkinson, will prevent mergers involving ownership, influence, or control by foreign states.
Specifically, takeovers where the majority owner is a foreign government will be prohibited, while deals where foreign state funding represents a minority interest may still be allowed.
This move is seen as a response to the bid by RedBird IMI, a fund largely backed by Sheikh Mansour bin Zayed Al Nahyan, the UAE vice president, to acquire The Telegraph. While the exact wording of the legislation is yet to be published, it is anticipated to be implemented once the Digital Markets Bill receives royal assent, likely by April.
Under the proposed regime, any mergers that could potentially breach the new foreign state ownership ban would be referred to the Competition and Markets Authority (CMA) for review. However, it remains uncertain whether a specific threshold for foreign state ownership or influence will be outlined in the law.
The announcement comes amid concerns raised by politicians across party lines regarding the potential impact of the UAE-backed takeover on press freedom. The Department for Culture is currently reviewing reports by media regulator Ofcom and the CMA regarding the bid. Additionally, former Tory leader in the Lords, Baroness Stowell, has been pushing for parliamentary oversight over foreign state takeovers of UK media companies.
While the legislative process unfolds, it is expected that the investigation into the attempted takeover of The Telegraph will continue. However, once the law is passed, it is likely to effectively block the bid by RedBird IMI.
