Friday, March 11, 2011

UNITED KINGDOM - The government rolls out the red carpet at Murdoch

Rupert Murdoch has still got what he wanted. Once again, politicians have bent over backwards to encourage the commercial ambitions of News Corp.. Once again, nobody had a say in this sordid little bargaining between the most powerful magnate of the British press and a government so eager for the blessing of the great man he is prepared to circumvent the law to facilitate his things.

There is always the possibility of obtaining a legal remedy, or that the consultation period of 15 days so generously allocated by the government results in a reversal, although this is unlikely. It is even possible that BSkyB's shareholders reject the offer from News Corp. as too low [the purchase price of 60.9% of the shares to other shareholders will probably be increased substantially to reflect rising of course since the launch of the operation in June 2010].

But in essence, Murdoch won. The ministers have shamefully ignored the established practice to push through a merger that would combine owner of half the national press and the largest operator of pay television nationally. A monstrous alliance dedicated by the policies, without taking into account the public interest - just as if they had given the green light to Tesco to buy Sainsbury's [the two major British supermarket group].

The government had other options. Jeremy Hunt, Minister of Culture, could follow the recommendations of the supervisory authority of Communications, Ofcom, and bring this matter to the Competition Commission for more independent regulation. It was the best way to proceed and especially the most accurate.

But he did not and it is not difficult to understand why. Once the decision is subject to the Competition Commission, it is beyond the control of the political and the verdict may then disturb the small cozy relationship maintained by the Prime Minister and his family with the management of News Corp.

Caution should nevertheless prevail because Mr. Murdoch has shown repeatedly that his political friendships to resist evil storm warning: once a government starts to be in trouble, Mr. Murdoch does not hesitate to drop for better him deal the final blow [the securities held by Murdoch, The Sun and News of the World in particular, who had campaigned for Tony Blair, Gordon Brown has dropped and the Labour to the Conservatives the last election].

Allow News Corp.. consolidate its position in the British media will only exacerbate the dependence of government on business priorities and policies of the group. It is unfair to the competition, advertisers and consumers. And above all, democracy is threatened.

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