UK to ban foreign state ownership of newspapers

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

The move follows concern about the potential takeover of the Daily Telegraph and Spectator by a group backed by the United Arab Emirates.

Labour has indicated it will back the change, which will be in an amendment to a new law being debated next week.

The government said the legislation would "deliver additional protections for a free press".

It was forced to act after cross-party pressure and a threatened defeat in the House of Lords.

Media minister Lord Parkinson of Whitley Bay said the new law would "rule out newspaper and periodical news magazine mergers involving ownership, influence or control by foreign states".

He said the government will bring forward an amendment to the Digital Markets, Competition and Consumers Bill, which has its third reading next week, that would block such deals.

It could apply to the Telegraph Media Group takeover if the law was passed swiftly, Lord Parkinson suggested. He also confirmed the buyout ban would not apply to broadcasters.

"Under the new measures the secretary of state would be obliged to refer media merger cases to the Competition and Markets Authority through a new foreign state intervention notice where she has reasonable grounds to believe that a merger involving a UK newspaper or news magazine has given or would give a foreign state or body connected to a foreign state, ownership, influence or control," Lord Parkinson said.

"The Competition and Markets Authority would be obliged to investigate the possible merger and if it concludes that the merger has resulted or would result in foreign state ownership, influence or control over a newspaper enterprise the secretary of state would be required by statute to make an order blocking or unwinding the merger."