Competition Commission gives GMG update
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Competition Commission gives GMG update

The Competition Commission has released a Statement of Issues on the investigation into the acquisition by Global Radio of GMG Radio Holdings.

The Office of Fair Trading (OFT) referred the case to the CC last month, and the CC has been asked to decide whether the acquisition may be expected to result in a substantial lessening of competition in any market or markets for goods or services in the UK.

The Competition Commission says it needs to work out if a combined group will harm the way RadioCentre operates (as Global Radio’s share will increase), the workings of the MXR Multiplexes (Global Radio had 51%, GMG Radio had 37% shares prior to the acquisition), and the commission paid for Newslink ads.

The assessment will include consideration of the closeness of competition between Global and GMG prior to the merger, including the extent of any differentiation between the parties’ stations in terms of demographics, geography and any other relevant characteristics. The CC will also consider the competitive constraint from other radio stations and other forms of advertising, such as print media, the internet, outdoor advertising and television.

“The focus of our inquiry is likely to be the potential effect of the acquisition on competition for advertising. We note, however, that this is linked to competition for listeners because the number of listeners to a particular radio station is an important factor in its attractiveness to advertisers. We will also consider any potential effects on listeners.”

The Statement, fully expected as part of the process, invites comments to be submitted by December 10th, with the final report still expected to be published by 27th March 2013.



0 13 130 21 November, 2012 Industry News Wednesday, November 21st, 2012

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Roy Martin is Managing Editor and Founder of RadioToday. Follow him on Twitter @roymartin.

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13 comments

    1. Radio Geordie

      Wouldn’t be allowed under the 2 plus 1 rule – The two has to be commercial operators.

      As Global would own both the regional and local licences in North Wales, means they can only keep one.

      Reply
      1. Declan McGrath

        But what gets me is that they have two FM licences for North Wales and they have a welsh Heart called Heart Cymru. What will be the future for that station.?

        Reply
      2. MB

        The 2 +1 has been scrapped, so it’s possible for Global to hold on to everything they currently have in Wales, it’s up to the CC to decide.

        Global have promised increased news coverage on Real Wales (including a nightly 20 minute news show) but only if they are not forced to sell anything in Wales.

        I think this will probably be enough for them to hold on to all of their stations in Wales, as the Welsh AMs will recommend it to the CC.

        Reply
  1. Steve Scott

    Safe to say that Real Wales will most definitely become Heart and that they may have to flog Capital South Wales. Maybe a nice little venture for Bauer or UTV if Capital South Wales goes?

    Reply
  2. Dave Wiggy Wiggins

    But Please Please Please I Do Say To Competition Commission I Do Say This Please Do Not Let Global To Take Over Gmg Smooth Radio Do Let Bauer Or Utv To Own Smooth Radio Please That Would Be So Much Better

    Reply
    1. Declan McGrath

      You don’t know nothing about Real Radio. You don’t even work for them. Im gonna get there contact details and say to them that your such annnoying little freak. ! And not been horrible but let me just say this. Global have got the group. So get over it.

      Reply
    1. Mr Severn Sound Fm

      Please Let Global Take Over Free Radio. That Would Be Good Wright Now. Then Capital 102.2 Would Become Choice 102.2 And Capital Would Have Midlands Wide Coverage. That Would Be Really Good Wright Now.

      Global Should Take Over Bauer As Well And Replace The Ex-Galaxys In North England Kiss. That Would Be Really Good Wright Now.

      Reply

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