UK Plans to Ban Foreign Governments from Owning British Media
The UK government announced yesterday that it intends to support a law banning foreign ownership of British newspapers and magazines to prevent foreigners from influencing the country's information policy. This step could actually disrupt the planned offer of a United Arab Emirates consortium to buy the British Telegraph media group.
The decision was made after many MPs from the government and opposition demanded an immediate and outright ban, rather than the standard regulatory approach.
Media Minister Stephen Parkinson said that the changes would be made through an amendment to the Digital Markets, Competition and Consumer Act, which is currently under consideration in Parliament.
The law, which is expected to be passed smoothly, will prevent foreign governments from taking over British publications. However, it will still be possible for foreign individuals and companies to do so.
The decision was motivated by concerns over the fate of the right-wing and conservative-oriented Telegraph media group, which includes the Daily Telegraph, Sunday Telegraph and Spectator. This group is to be bought by Red Bird IMI, a company backed by the US firm Red Bird Capital Partners and Sheikh Mansour bin Zayed Al Nahyan, a member of the royal family in Abu Dhabi and vice president of the United Arab Emirates.
Sheikh Mansour has been highly respected in the UK since he took over Manchester City Football Club in 2008 and significantly improved its success in the English Premier League.
The takeover of the Telegraph Media Group, which is close to the ruling Conservative Party, is the subject of a separate investigation ordered by Culture Secretary Lucy Fraser into its possible impact on press freedom.
Red Bird Imi said it was "very disappointed" with the British government's decision.
It marks an important turning point in the dispute over the future ownership of The Telegraph, which was seized from the Barclays family by Lloyds Banking Group in June in a dispute over £1.2 billion in overdue debt. RedBird IMI helped the family repay the debt in December with a loan that it intended to convert into ownership of The Telegraph and The Spectator. The Barclay family has regained ownership, but is prohibited by law from exercising any control over titles run by independent directors.
The UAE's involvement in RedBird IMI has raised concerns about press freedom.
Some UK news organisations, such as The Independent, are already partially owned by foreign government agencies. It is understood that the new ban will not apply retrospectively, so existing foreign ownership of UK news organisations, such as the Saudi stake in The Independent, will not be affected. Colleagues also noted that a Norwegian investment fund has shares in various UK media outlets through the stock market.