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Communications Bill


Communications Bill
Schedule 14 — Media ownership rules
Part 1 — Channel 3 services

    422

 

              (b)             he runs national newspapers which for the time being together have

a national market share of 20 per cent. or more.

          (2)      A person is not to hold a licence to provide a regional Channel 3 service if—

              (a)             he runs a local newspaper which for the time being has a local market

share of 20 per cent. or more in the coverage area of the service; or

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              (b)             he runs local newspapers which for the time being together have a

local market share of 20 per cent. or more in that coverage area.

          (3)      For the purposes of this paragraph, where there is a licence to provide a

Channel 3 service, each of the following shall be treated as holding that

licence—

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              (a)             the actual licence holder; and

              (b)             every person connected with the actual licence holder.

Restrictions on participation

  2       (1)      A person who is—

              (a)             the proprietor of a national newspaper which for the time being has

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a national market share of 20 per cent. or more, or

              (b)             the proprietor of national newspapers which for the time being

together have a national market share of 20 per cent. or more,

                   is not to be a participant with more than a 20 per cent. interest in a body

corporate which is the holder of a licence to provide a Channel 3 service.

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          (2)      A person who is the holder of a licence to provide a Channel 3 service is not

to be a participant with more than a 20 per cent. interest in a body corporate

which is a relevant national newspaper proprietor.

          (3)      A body corporate is not to be a participant with more than a 20 per cent.

interest in a body corporate which holds a licence to provide a Channel 3

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service if the first body corporate is one in which a relevant national

newspaper proprietor is a participant with more than a 20 per cent. interest.

          (4)      A restriction imposed by this paragraph on participation in a body corporate

which is the holder of a Channel 3 licence applies equally to participation in

a body corporate which controls the holder of such a licence.

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          (5)      Any restriction on participation imposed by this paragraph—

              (a)             on the proprietor of a newspaper, or

              (b)             on the holder of a licence,

                            is to apply as if he and every person connected with him were one person.

          (6)      In this paragraph “a relevant national newspaper proprietor” means a

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person who runs—

              (a)             a national newspaper which for the time being has a national market

share of 20 per cent. or more; or

              (b)             national newspapers which for the time being together have a

national market share of 20 per cent. or more.

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National and local newspapers and their respective national and local market shares

  3       (1)      In this Part of this Schedule references to a national or local newspaper are

references to a national or local newspaper circulating wholly or mainly in

the United Kingdom or in a part of the United Kingdom.

 

 

Communications Bill
Schedule 14 — Media ownership rules
Part 1 — Channel 3 services

    423

 

          (2)      Where a newspaper is published in different regional editions on the same

day, OFCOM have the power to determine whether those regional editions

should be treated for the purposes of this Part of this Schedule as

constituting—

              (a)             one national newspaper;

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              (b)             two or more local newspapers; or

              (c)             one national newspaper and one or more local newspapers.

          (3)      In the case of a newspaper which would otherwise be neither a national nor

a local newspaper for the purposes of this Part of this Schedule, OFCOM

have the power to determine, if they consider it appropriate to do so in the

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light of—

              (a)             its circulation and influence in the United Kingdom, or

              (b)             its circulation or influence in a part of the United Kingdom,

                   that the newspaper is to be treated as a national or as a local newspaper for

such of those purposes as they may determine.

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          (4)      For the purposes of this Part of this Schedule, the national market share of a

national newspaper at any time is the percentage of the total number of

copies of all national newspapers sold in the United Kingdom in the relevant

six months which is represented by the total number of copies of that

newspaper sold in the United Kingdom in that six months.

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          (5)      For the purposes of this Part of this Schedule, the local market share of a local

newspaper in any area at any time is the percentage of the total number of

copies of all local newspapers sold in that area in the relevant six months

which is represented by the total number of copies of that newspaper sold in

that area in that six months.

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          (6)      In sub-paragraphs (4) and (5) “the relevant six months” means the six

months ending with the last whole calendar month to end before the time in

question.

          (7)      For the purposes of sub-paragraphs (4) and (5), the number of copies of a

newspaper sold in the United Kingdom, or in a particular area, during any

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period may be taken to be such number as is estimated by OFCOM—

              (a)             in such manner, or

              (b)             by reference to such statistics prepared by any other person,

                   as they think fit.

          (8)      In relation to a newspaper which is distributed free of charge (rather than

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sold), references in this paragraph to the number of copies sold include

references to the number of copies distributed.

Construction of references to running a newspaper

  4        For the purposes of this Part of this Schedule a person runs a national or local

newspaper if—

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              (a)             he is the proprietor of the newspaper; or

              (b)             he controls a body which is the proprietor of the newspaper.

Coverage area of a Channel 3 service

  5        For the purposes of this Part of this Schedule the coverage area for a Channel

3 service is the area that is determined by OFCOM to be the area of the

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United Kingdom within which that service is capable of being received at a

 

 

Communications Bill
Schedule 14 — Media ownership rules
Part 2 — Radio multiplex services

    424

 

  5        level satisfying such technical standards as may have been laid down by

them for the purposes of this paragraph.

Power to amend Part 1 of Schedule

  6        The Secretary of State may by order repeal or otherwise modify any of the

restrictions imposed by this Part of this Schedule.

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Part 2

Radio multiplex services

Restriction on holding of national radio multiplex licences

  7        A person is not to hold more than one national radio multiplex licence at the

same time.

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Restriction on holding of local radio multiplex licences

  8       (1)      A person is not to hold any two local radio multiplex licences at the same

time where the coverage area of one of the licensed services overlaps with

the coverage area of the other in a way that means that the potential

audience for one of them is or includes at least half the potential audience of

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the other.

          (2)      For the purposes of this paragraph the coverage area for a local radio

multiplex service is the area determined by OFCOM to be the area in the

United Kingdom within which that service is capable of being received at a

level satisfying such technical standards as may have been laid down by

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them for the purposes of this sub-paragraph.

          (3)      Where a person is in contravention of this paragraph in respect of the

holding by him of local radio multiplex licences, that contravention is to be

disregarded in relation to any time if—

              (a)             he held those licences immediately before the commencement of this

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paragraph;

              (b)             his holding of those licences immediately before the commencement

of this paragraph was not in contravention of paragraph 11(4) of Part

3 of Schedule 2 to the 1990 Act; and

              (c)             there has not been a relevant change of circumstances between the

30

commencement of this paragraph and that time.

          (4)      There is a relevant change of circumstances in the case of the person in

contravention if another person becomes the holder of the two pre-

commencement licences in relation to which the contravention arises.

          (5)      In sub-paragraph (4) “pre-commencement licence”, in relation to a person

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and a time, means a local radio multiplex licence held by him immediately

before the commencement of this paragraph and still held by him at that

time.

Connected persons rules etc.

  9        For the purposes of this Part of this Schedule, where there is a licence to

40

provide a radio multiplex service, each of the following shall be treated as

holding that licence—

 

 

Communications Bill
Schedule 14 — Media ownership rules
Part 3 — Local sound programme services

    425

 

              (a)             the actual licence holder; and

              (b)             every person connected with the actual licence holder.

Power to amend Part 2 of Schedule

  10       The Secretary of State may by order repeal or otherwise modify any of the

restrictions imposed by this Part of this Schedule.

5

Part 3

Local sound programme services

Restriction on holding of local sound broadcasting licences

  11      (1)      The Secretary of State may by order impose—

              (a)             requirements prohibiting the holding at the same time by the same

10

person, in the circumstances described in the order, of more than the

number of local sound broadcasting licences that is determined in

the manner set out in the order;

              (b)             requirements prohibiting a person from holding even one local

sound broadcasting licence in the circumstances described in the

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order.

          (2)      The circumstances by reference to which a person may be prohibited under

sub-paragraph (1) from holding a local sound broadcasting licence, and the

factors that may be used for determining the number of such licences that he

may hold, include, in particular—

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              (a)             whether and to what extent the coverage areas of different services

provided by that person under different local sound broadcasting

licences would overlap;

              (b)             the sizes of the potential audiences for those services and the times

when those services would be made available;

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              (c)             whether and to what extent members of the potential audiences for

those services would also be members of the potential audiences for

services provided under local sound broadcasting licences held by

other persons;

              (d)             in a case in which members of potential audiences for services so

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provided by that person would also be members of the potential

audiences for services so provided by other persons—

                    (i)                   the number of those other persons;

                    (ii)                  the coverage areas of their services;

                    (iii)                 the sizes of the potential audiences for their services; and

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                    (iv)                  the times when their services are or will be made available;

              (e)             whether that person runs one or more national newspapers, and

their national market share;

              (f)             whether and to what extent the whole or a part of the coverage area

for a service for which that person would hold a local sound

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broadcasting licence is or includes an area in which one or more local

newspapers run by him is circulating, and the newspapers’ local

market share;

              (g)             whether and to what extent the whole or a part the coverage area for

which that person would hold a local sound broadcasting licence is

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Communications Bill
Schedule 14 — Media ownership rules
Part 3 — Local sound programme services

    426

 

              (g)             or is included in the coverage area of a regional Channel 3 service for

which he also holds a licence.

          (3)      For the purposes of this paragraph the coverage area for a service provided

under a local sound broadcasting licence or a Channel 3 licence is the area in

the United Kingdom within which that service is capable of being received

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at a level satisfying such technical standards as may have been laid down by

OFCOM for the purposes of the provisions of an order under this paragraph.

Restriction applying to local digital sound programme services

  12      (1)      The Secretary of State may by order impose requirements, on persons

holding local digital sound programme licences, prohibiting the provision

10

by the same person, in the circumstances described in the order, of more

than the number of local digital sound programme services that is

determined in the manner set out in the order.

          (2)      The circumstances by reference to which a person may be prohibited under

sub-paragraph (1) from providing a local digital sound programme service,

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and the factors that may be used for determining the number of such

services that he may provide, include, in particular—

              (a)             whether and to what extent the coverage areas of different local

digital sound programme services provided by that person would

overlap;

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              (b)             the capacity used by those services on the relevant multiplexes;

              (c)             the sizes of the potential audiences for those services and the times

when those services would be made available;

              (d)             whether and to what extent members of the potential audiences for

those services would also be members of the potential audiences for

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local digital sound programme services provided by other persons;

              (e)             in a case in which members of the potential audiences for the services

provided by that person would also be members of the potential

audiences for local digital sound programme services provided by

other persons—

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                    (i)                   the number of those other persons;

                    (ii)                  the coverage areas of their services;

                    (iii)                 the capacity used by their services on the relevant

multiplexes;

                    (iv)                  the sizes of the potential audiences for their services; and

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                    (v)                   the times when their services are or will be made available.

          (3)      For the purposes of this paragraph the coverage area for a service provided

under a local digital sound programme licence is the area in the United

Kingdom within which the relevant multiplex is capable of being received

at a level satisfying such technical standards as may have been laid down by

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OFCOM for the purposes of the provisions of an order under this paragraph.

          (4)      In this paragraph “the relevant multiplex”, in relation to a service provided

under a local digital sound programme licence, means the local radio

multiplex service in which the service provided under that licence is or is to

be included.

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          (5)      For the purposes of this paragraph a person who holds a licence to provide

local digital sound programme services provides such a service if, and only

if—

 

 

Communications Bill
Schedule 14 — Media ownership rules
Part 3 — Local sound programme services

    427

 

              (a)             the service is one provided by him and is included in a local radio

multiplex service for which he holds a local radio multiplex licence;

or

              (b)             under a contract between that person and a person who holds a

licence to provide a local radio multiplex service, the person holding

5

the licence to provide the radio multiplex service is required to

include that local digital sound programme service in that multiplex

service.

Powers supplemental to powers under paragraphs 11 and 12

  13      (1)      An order under paragraph 11 or 12 may make provision for treating—

10

              (a)             persons who are connected with a person who holds a licence,

              (b)             persons who are associates of a person who holds a licence or of a

person who is connected with a person who holds a licence, and

              (c)             persons who (whether alone or together with such persons as may be

described in the order) participate in a body which holds a licence or

15

is treated as doing so by virtue of paragraph (a) or (b),

                   as if each of them were also a holder of the licence for the purposes of a

requirement imposed under that paragraph.

          (2)      An order under paragraph 12 may make provision for treating—

              (a)             persons who are connected with a person who provides a local

20

digital sound programme service,

              (b)             persons who are associates of a person who provides such a service

or of a person who is connected with a person who provides such a

service, and

              (c)             persons who (whether alone or together with such persons as may be

25

described in the order) participate in a body who provides such a

service or is treated as doing so by virtue of paragraph (a) or (b),

                   as if each of them were also a person providing the service for the purposes

of a requirement imposed under that paragraph.

          (3)      An order under paragraph 11 or 12 may also make provision for treating—

30

              (a)             persons who are connected with each other,

              (b)             persons who are associates of each other, and

              (c)             persons who (whether alone or together with such persons as may be

described in the order) participate in a body,

                   as if they and such other persons who are connected with, associates of or

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paticipators in any of them as may be described in the order were the same

person for the purposes of a requirement imposed under that paragraph.

          (4)      An order under paragraph 11 may make provision—

              (a)             as to the circumstances in which a newspaper is to be treated as a

national newspaper or a local newspaper for the purposes of a

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requirement imposed under that paragraph;

              (b)             as to the person or persons who are to be treated for any such

purposes as running a newspaper;

              (c)             as to the determination for any such purposes of the area within

which a local newspaper is circulating; and

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              (d)             as to what is to constitute the national market share or local market

share of any newspaper or of a number of newspapers taken

together;

 

 

Communications Bill
Schedule 14 — Media ownership rules
Part 3 — Local sound programme services

    428

 

                   and provision made by virtue of this paragraph may apply, with or without

modifications, any of the provisions of paragraph 3 or 4 of this Schedule.

          (5)      Power to make provision with respect to any matter by any order under

paragraph 11 or 12 includes power—

              (a)             to make provision with respect to that matter by reference to the

5

making or giving by OFCOM, in accordance with the order, of any

determination, approval or consent; and

              (b)             to confer such other discretions on OFCOM as the Secretary of State

thinks fit.

          (6)      Sub-paragraph (5) of paragraph 12 applies for the purposes of this

10

paragraph as it applies for the purposes of that paragraph.

Transitional provision for orders under paragraphs 11 and 12

  14      (1)      This paragraph applies where—

              (a)             immediately after the coming into force of an order under paragraph

11 or 12, a person (“the person in contravention”) is in contravention,

15

in any respect, of a requirement imposed under that paragraph; and

              (b)             immediately before the coming into force of the order, that person—

                    (i)                   held one or more relevant licences; but

                    (ii)                  was not, in that respect, in contravention of a requirement

imposed under that paragraph.

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          (2)      This paragraph does not apply in the case of the first order to be made under

paragraph 11 or 12 if the person in contravention was, immediately before

the coming into force of the order, in contravention, in relation to one or

more of the relevant licences, of a requirement imposed under Part 3 or 4 of

Schedule 2 to the 1990 Act.

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          (3)      In sub-paragraphs (1) and (2) the reference to a relevant licence is—

              (a)             in relation to the coming into force of an order under paragraph 11,

a local sound broadcasting licence; and

              (b)             in relation to the coming into force of an order under paragraph 12,

a local digital sound programme licence.

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          (4)      The contravention mentioned in sub-paragraph (1)(a), to the extent that it

arises by reason of the coming into force of the order, is to be disregarded (in

the case of the person in contravention) in relation to any time which falls—

              (a)             after the coming into force of the order; and

              (b)             before there is a relevant change of circumstances.

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          (5)      Where the contravention is one arising under paragraph 11 in the case of a

person who held one or more local sound broadcasting licences immediately

before the coming into force of the order, there is a relevant change of

circumstances if—

              (a)             another person becomes the holder of any of those licences,

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otherwise than in consequence of a transaction under which the

person in contravention ceases to be a holder of the licence; or

              (b)             the person in contravention becomes the holder of another local

sound broadcasting licence.

          (6)      A change of circumstances is not a relevant change of circumstances by

45

virtue of sub-paragraph (5)(b) unless the licence of which the person in

contravention becomes the holder is one the holding of which, with the

 

 

 
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