Government to ban foreign states from buying British newspapers

In the face of cross-party pressure and defeat in the House of Lords, the government has said foreign powers will be banned from owning UK newspapers, Politics Correspondent Carl Dinnen explains

Foreign states will be banned from owning UK newspapers and news magazines, the government has confirmed.

Ministers are expected to make a commitment on Wednesday to amend the Digital Markets Bill to prevent such takeovers, following pressure from peers.

The move has been prompted by concern about a potential takeover of The Daily Telegraph and The Spectator by Redbird IMI, an investment fund majority-owned by Sheikh Mansour bin Zayed Al Nahyan, vice president of the United Arab Emirates (UAE) and owner of Manchester City Football Club.

Peers were set to debate an amendment to the Bill proposed by Baroness Stowell, a former Conservative leader of the House of Lords, that would prevent foreign powers from acquiring UK news media organisations.

Baroness Stowell said it was “inconceivable” a foreign government should be able to own a UK news group and the "freedom of the press is fundamental to a functioning democracy."

It is understood that the government will commit to bringing in its own amendment that will effectively mirror that of Baroness Stowell when the Bill has its third reading in the Lords in late March, with details expected to be published as soon as next week.

The government hopes that this will persuade Baroness Stowell to withdraw her amendment, which had received cross-party support.

The proposed takeover of The Daily Telegraph and The Spectator has also been subject to a separate investigation ordered by the Culture Secretary, Lucy Frazer, due to its possible impact on press freedom.

Regulators Ofcom and the Competition and Markets Authority submitted reports to Ms Frazer on Monday, with the minister now considering next steps.

Labour has also called for the acquisition to be blocked, with shadow culture secretary Thangam Debbonaire saying the party’s view “is that foreign governments should not own national newspapers.

Former editor of the Daily Telegraph Lord Moore of Etchingham, who sits as a non-affiliated peer, said it had been a difficult time for the newspaper.

He added: “If we had had such a rule from the start and such clarity people wouldn’t have had to get into this issue of saying rather difficult truths about many regimes over the word, we would simply be able to say ‘No, sorry, the rule is the rule and that’s that’.”

Changes could apply to the Telegraph Media Group takeover if they pass into law swiftly, Lord Parkinson suggested.

Responding to the government’s decision to propose new laws banning foreign states from owning British newspapers, a spokesperson for RedBird IMI said: “We are extremely disappointed by today’s development. To date, Redbird IMI has made six investments across the UK and US, and we believed the UK’s media environment was worthy of further investment.

“As with each of our deals, we have been clear that the acquisition of The Telegraph and The Spectator has been a fully commercial undertaking.

“We remain committed to developing powerful and commercially sustainable global media assets. We will now evaluate our next steps, with commercial interests continuing to be the sole priority.”

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