The United Kingdom's Prime Minister Rishi Sunak is contemplating the introduction of new measures empowering lawmakers to block foreign state ownership of British news organizations.
Amendments to existing laws are being considered as a bid by the United Arab Emirates ruling family to attain a controlling stake in the Daily Telegraph and Sunday Telegraph newspapers is facing mounting uncertainty and opposition, prompting discussions on safeguarding UK media independence.
The UK government's plan to change the law may extend to the revision of current legislation, including the 2002 Enterprise Act, reported the Financial Times newspaper.
A proposed amendment to the digital markets bill, currently under consideration in Parliament, aims to grant the government authority to block foreign states from acquiring British news organizations.
Sunak is under growing pressure from Conservative Party members of Parliament to intervene in the 600-million-pound ($767-million) acquisition of Telegraph Media Group by the Abu Dhabi-backed fund Redbird IMI, said the FT.
The UK's Competition and Markets Authority, or CMA, and Ofcom, the communications regulator, have submitted the results of their investigations into the proposed acquisition to Culture Secretary Lucy Frazer, it was confirmed on Monday.
The CMA said Frazer will make the final decision on whether the controversial acquisition aligns with public interest, though no date has been set for this.
In a social media post, Ofcom said: "We have provided our advice to the secretary of state in accordance with the deadline she has set. Publication of our advice and any decision on how to proceed are matters for the secretary of state."
Frazer could decide to greenlight the deal or refer it back to the competition watchdog for thorough examination, a process that could extend over several months, reported the City AM newspaper.
Alex Haffner, a competition partner at law firm Fladgate, said: "One can expect the minister to look very closely at what the two regulators have told her about the level of risk to media plurality and competition arising from the proposed transaction, in particular the former given the very high level of public debate as to whether Redbird IMI are 'fit and proper' to run a major establishment news organization."
Many lawmakers have cautioned that the deal poses a risk to press freedom.
The opposition Labour Party stated on Monday that it is also against a UAE-backed takeover of Telegraph Media Group.
Thangam Debbonaire, Labour's shadow culture secretary, told The Spectator magazine that the opinion of the party "is that foreign governments should not own national newspapers. This is a bid by a foreign power, funded by the deputy prime minister of the UAE (Sheikh Mansour bin Zayed Al Nahyan), and as such this bid should not pass".
