Lisa Nandy requests CMA and Ofcom reviews of Sky-ITV deal

Public-interest consideration would extend to on-demand programs

LONDON — U.K. Culture Secretary Lisa Nandy said Wednesday she would intervene in the planned 1.6 billion-pound ($2.2 billion) deal between Sky and ITV’s media and entertainment arm. Sky is a U.K.-based television, internet and mobile phone provider owned by Comcast. Nandy also said she would ask two regulators to assess the takeover and introduce legislation for a new public-interest consideration for streamers.

The proposed transaction, announced in June, would bring Sky together with ITV’s terrestrial television channels and streaming service. ITV is the U.K.’s largest commercial broadcaster. Nandy said one of the deal’s main motivations was to create a major competitor to global streaming companies.

Nandy said she would ask the Competition and Markets Authority, or CMA, and Ofcom, the industry regulator, to review the takeover. The CMA would report back to Nandy on competition, while Ofcom would report on media public-interest considerations. Both regulators were asked to respond by Jan. 27.

Nandy said she may then decide to refer the transaction to the CMA for further investigation. The possibility of a referral would follow the initial competition and media public-interest reviews requested by the culture secretary.

Separately from the regulatory reviews, Nandy said she would introduce legislation for a new public-interest consideration for streamers. Such a consideration would determine how the government considers streaming services when assessing media public-interest issues.

Nandy said the public-interest consideration should “apply to on-demand programs as well as broadcasting in line with modern viewing habits.” She tied the proposed scope to the shift toward on-demand viewing.

ITV’s production arm, ITV Studios, would remain outside the combined media company under the proposed deal. ITV Studios, known for series such as “I’m A Celebrity,” would remain an independent company.

If the transaction is approved, the combined Sky-ITV entity would become part of NBCUniversal following completion of NBCUniversal’s split from Comcast.