New measures will be put in place by the UK government which will ban foreign governments from owning newspapers or news magazines within the country. The decision came following worries that the United Arab Emirates would buy the Daily Telegraph and Spectator with financial backing. Cross-party criticism ensued, and Labour has confirmed that it will support the change. The government has stated that the legislation will implement “additional protections for a free press.”
The new law aims to stop any takeover of newspapers or periodicals by foreign states, their influence or control. The amendment to the Digital Markets, Competition and Consumers Bill would rule out any potential deals from now on. The new law will not apply to broadcasters, as confirmed by media minister Lord Parkinson of Whitley Bay. He has said the ban could still be imposed on the Telegraph Media Group’s takeover, pending the swift fruition of the bill.
Sheikh Mansour, the deputy prime minister and vice president of the UAE, was hoping for the takeover via his 75% owned investment fund, RedBird IMI. The goal was projected after payment of debts of the previous owner. However, it seems likely that the bid will not be successful in light of growing political opposition.
Lady Stowell, current chair of the Communications and Digital Committee and a former cabinet minister, has led a cross-party campaign aimed at preventing foreign powers from acquiring UK news media organisations. Her concerns were firmed up during a conversation at the House of Lords. Stowell said, “Allowing foreign governments to own such a critical and sensitive part of our nation would damage public confidence in all of us yet further if it was allowed to happen.”
The government has confirmed that the new law will work alongside the Competition and Markets Authority to ensure that all proposed takeovers in the news media sector are heavily scrutinized and checked for foreign state influence or control. The legislation is expected to pass with the support of the Labour Party
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