Even the smallest of local newspapers could be caught up in new rules over mergers and acquisitions under the new Communications Bill, the Newspaper Society is warning.

In its final submission to the Government on the Bill, the Newspaper Society warned that the proposals on newspaper mergers set out a highly complex regime that would extend the regulations to smaller local newspaper publishers. It would even affect the smallest transactions involving just one weekly title – involving companies and transactions which are currently free of special controls.

The Society believes the Government’s proposals are inconsistent with its declared policy objectives of streamlining and simplifying the current newspaper merger regime.

The Newspaper Society submission said: “The complexities of the proposed scheme would increase the regulatory burden upon the regional and local press.

“The acquisition of a single weekly local newspaper, paid-for or free, could lead to the complicated interaction, inquiries and powers of the Office of Fair Trading, Competition Commission, Department of Trade and Industry and the regulator OFCOM before the final decision by the Secretary of State.”

The Society called for regional newspapers currently subject only to competition law and the general merger regime to remain subject only to such general law under the new regime.

It said that would be consistent with the Government’s intention to introduce lighter regulation.

It said: “The Government must recognise the reality of the fiercely competitive editorial and commercial environment in which regional and local newspaper companies operate.

“Instead of imposing new, unwarranted ownership restrictions upon regional newspaper companies, the Government must bring forward legislation that gives them the freedom to evolve, develop and fairly compete with their many competitors at every level.”

The Society has welcomed the Government’s decision to abolish the requirements for prior consent and criminal sanctions for any newspaper transfer, but pointed out that the overall effect of the proposals would be to enhance the Government’s discretionary powers in newspaper merger cases and to complicate the regulatory procedures.

“The regional press is a vibrant and innovative dimension of the UK’s media and communications industry. If its contribution to local communities is valued, it is vital that the new regulatory framework encourages and enables regional and local newspaper companies to develop and flourish,” the submission said.

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