SCHEDULES

SCHEDULE 2 U.K. Restrictions on the Holding of Licences

[F1 Part IV U.K. Restrictions on Controlling Interests in Both Newspapers and Licensed Services]

Textual Amendments

F1 Sch. 2 Pt. IV substituted (10.8.1996 for certain purposes, 1.11.1996 for certain further purposes and otherwise 1.4.1997) by 1996 c. 55, s. 73, Sch. 2 Pt. III para. 11 (with s. 43(1)(6)); S.I. 1996/2120, arts. 3, 5, Sch. 2; S.I. 1997/1005, art. 4

[F2 Meaning of “ relevant authority” U.K.

Textual Amendments

F2 Sch. 2 Pt. IV substituted (10.8.1996 for certain purposes, 1.11.1996 for certain further purposes and otherwise 1.4.1997) by 1996 c. 55, s. 73, Sch. 2 Pt. III para. 11 (with s. 43(1)(6)); S.I. 1996/2120, arts. 3, 5, Sch. 2; S.I. 1997/1005, art. 4

• In this Part of this Schedule “the relevant authority”—

  (a)

  in relation to any restriction having effect in relation to any licence which has been or may be granted by the Commission, means the Commission, and

  (b)

  in relation to any restriction having effect in relation to any licence which has been or may be granted by the Authority, means the Authority.]

Textual Amendments

F3 Sch. 2 Pt. IV substituted (10.8.1996 for certain purposes, 1.11.1996 for certain further purposes and otherwise 1.4.1997) by 1996 c. 55, s. 73, Sch. 2 Pt. III para. 11 (with s. 43(1)(6)); S.I. 1996/2120, arts. 3, 5, Sch. 2; S.I. 1997/1005, art. 4

National and local newspapers and their respective national and local market shares U.K.

F4 2 (1) In this Part of this Schedule references to a national or local newspaper are (subject to sub-paragraph (3)) references to a national or local newspaper circulating wholly or mainly in the United Kingdom or in a part of the United Kingdom. U.K.

(2) Where a newspaper is published in different regional editions on the same day, the relevant authority may determine, having regard to all the circumstances, whether those regional editions are to be treated for the purposes of this Part of this Schedule as constituting one national newspaper, two or more local newspapers or one national newspaper and one or more local newspapers.

(3) The relevant authority may determine that a newspaper which would otherwise be neither a national nor a local newspaper for the purposes of this Part of this Schedule shall be treated as a national or (as the case may be) a local newspaper for the purposes of any particular restriction imposed by or under this Part of this Schedule if it appears to them to be appropriate for the newspaper to be so treated having regard to its circulation or influence in the United Kingdom or (as the case may be) in a part of the United Kingdom.

(4) For the purposes of this Part of this Schedule, the “national market share” of any national newspaper at any time in a calendar month is the total number of copies of that newspaper sold in the United Kingdom in the six months ending with the last day of the previous month, expressed as a percentage of the total number of copies of all national newspapers sold in the United Kingdom in those six months.

(5) For the purposes of this Part of this Schedule, the “local market share” of any local newspaper in any area at any time in a calendar month is the total number of copies of that newspaper sold in that area in the six months ending with the last day of the previous month, expressed as a percentage of the total number of copies of all local newspapers sold in that area in those six months.

(6) For the purposes of sub-paragraphs (4) and (5), the relevant authority may estimate the numbers of copies of any newspaper sold in the United Kingdom, or in any area, during any period in such manner, or by reference to such statistics prepared by any other person, as they think fit.

(7) In relation to any newspaper which is distributed free of charge rather than being sold, references in sub-paragraphs (4) to (6) to the number of copies sold shall have effect as references to the number of copies distributed.

Textual Amendments

F4 Sch. 2 Pt. IV substituted (10.8.1996 for certain purposes, 1.11.1996 for certain further purposes and otherwise 1.4.1997) by 1996 c. 55, s. 73, Sch. 2 Pt. III para. 11 (with s. 43(1)(6)); S.I. 1996/2120, arts. 3, 5, Sch. 2; S.I. 1997/1005, art. 4

Other interpretative provisions U.K.

F5 3 (1) For the purposes of this Part of this Schedule a person runs a national or local newspaper if— U.K.

(a) he is the proprietor of the newspaper, or.

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

(2) Paragraph 1(4) in Part III of this Schedule shall have effect for the purposes of this Part of this Schedule as it has effect for the purposes of Part III.

Textual Amendments

F5 Sch. 2 Pt. IV substituted (10.8.1996 for certain purposes, 1.11.1996 for certain further purposes and otherwise 1.4.1997) by 1996 c. 55, s. 73, Sch. 2 Pt. III para. 11 (with s. 43(1)(6)); S.I. 1996/2120, arts. 3, 5, Sch. 2; S.I. 1997/1005, art. 4

Restrictions on common control etc. U.K.

F6 4 (1) No person who runs a national newspaper which for the time being has, or national newspapers which for the time being together have, a national market share of 20 per cent. or more may hold a licence to provide— U.K.

(a) a regional or national Channel 3 service or Channel 5, or

(b) a national or local radio service.

(2) A licence to provide a regional Channel 3 service may not be held by a person who runs a local newspaper which for the time being has, or local newspapers which for the time being together have, a local market share of 20 per cent. or more in the coverage area of the service.

(3) A licence to provide digital programme services may not be held by a person who runs a local newspaper which for the time being has, or local newspapers which for the time being together have, a local market share of 20 per cent. or more in the coverage area of any digital programme service provided under the licence.

(4) For the purposes of this paragraph a person shall be treated as holding a licence if the licence is held by a person connected with him.

Textual Amendments

F6 Sch. 2 Pt. IV substituted (10.8.1996 for certain purposes, 1.11.1996 for certain further purposes and otherwise 1.4.1997) by 1996 c. 55, s. 73, Sch. 2 Pt. III para. 11 (with s. 43(1)(6)); S.I. 1996/2120, arts. 3, 5, Sch. 2; S.I. 1997/1005, art. 4

Restrictions on participation U.K.

F7 5 (1) No proprietor of a national newspaper which for the time being has, or of national newspapers which for the time being together have, a national market share of 20 per cent. or more shall be a participant with more than a 20 per cent. interest in a body corporate which is the holder of a licence to provide any of the services specified in sub-paragraph (4). U.K.

(2) No person who is the holder of a licence to provide any of the services specified in sub-paragraph (4) shall be a participant with more than a 20 per cent. interest in a body corporate which runs a national newspaper which has, or two or more national newspapers which together have, a national market share of 20 per cent. or more..

(3) No body corporate in which a person who runs a national newspaper which has, or national newspapers which together have, a national market share of 20 per cent. or more is a participant with more than a 20 per cent. interest, shall be a participant with more than a 20 per cent. interest in a body corporate which holds a licence to provide any of the services specified in sub-paragraph (4).

(4) The services referred to in sub-paragraphs (1), (2) and (3) are—

(a) a regional or national Channel 3 service or Channel 5, and

(b) national or local radio services.

(5) The Secretary of State may by order amend sub-paragraph (1), (2) or (3) by substituting a different percentage interest in a body corporate for the percentage for the time being specified there.

(6) Any restriction imposed by this paragraph on participation in a body corporate which is the holder of a particular kind of licence shall apply equally to participation in a body corporate which controls the holder of such a licence.

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

(a) on the proprietor of any newspaper, or

(b) on the holder of any licence,

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

Textual Amendments

F7 Sch. 2 Pt. IV substituted (10.8.1996 for certain purposes, 1.11.1996 for certain further purposes and otherwise 1.4.1997) by 1996 c. 55, s. 73, Sch. 2 Pt. III para. 11 (with s. 43(1)(6)); S.I. 1996/2120, arts. 3, 5, Sch. 2; S.I. 1997/1005, art. 4

Holding of local radio licence by person running local newspapers with at least 50 per cent local market share U.K.

F8 6 (1) A licence to provide a local radio service may not be held by a person who runs a local newspaper which has, or local newspapers which for the time being together have, a local market share of 50 per cent. or more in the coverage area of the service unless— U.K.

(a) the service in question shares a potential audience with another local radio service, but

(b) he does not hold any other licence to provide a local radio service whose coverage area is to any extent the same as the coverage area of the service in question.

(2) The reference in sub-paragraph (1) to sharing a potential audience shall be construed in accordance with paragraph 12(5) in Part III of this Schedule..

(3) For the purposes of this paragraph a person shall be treated as holding a licence if the licence is held by a person connected with him.

Textual Amendments

F8 Sch. 2 Pt. IV substituted (10.8.1996 for certain purposes, 1.11.1996 for certain further purposes and otherwise 1.4.1997) by 1996 c. 55, s. 73, Sch. 2 Pt. III para. 11 (with s. 43(1)(6)); S.I. 1996/2120, arts. 3, 5, Sch. 2; S.I. 1997/1005, art. 4

Further restrictions on holding of local radio licences by a person who runs a local newspaper U.K.

F9 7 (1) No person who runs a local newspaper which for the time being has, or local newspapers which for the time being together have, a local market share of 20 per cent. or more in each of the relevant areas may hold any three licences to provide local radio services any of which shares a potential audience with each of the other services. U.K.

(2) No person who runs a local newspaper which for the time being has, or local newspapers which for the time being together have, a local market share of 20 per cent. or more in both the relevant areas may hold any two licences to provide local radio services which share a potential audience, unless one of the licences is an AM licence and the other is an FM licence.

(3) In sub-paragraphs (1) and (2)—

(a) “the relevant areas” means the coverage areas of the local radio services in question,

(b) references to sharing a potential audience shall be construed in accordance with sub-paragraph (5) of paragraph 12 in Part III of this Schedule, and

(c) “AM licence” and “FM licence” have the same meaning as in that paragraph.

(4) For the purposes of this paragraph a person shall be treated as holding a licence if the licence is held by a person connected with him.

(5) This paragraph has effect subject to paragraph 8.

Textual Amendments

F9 Sch. 2 Pt. IV substituted (10.8.1996 for certain purposes, 1.11.1996 for certain further purposes and otherwise 1.4.1997) by 1996 c. 55, s. 73, Sch. 2 Pt. III para. 11 (with s. 43(1)(6)); S.I. 1996/2120, arts. 3, 5, Sch. 2; S.I. 1997/1005, art. 4

Power by order to impose different restrictions in place of paragraph 7 U.K.

F10 8 (1) The Secretary of State may by order provide that, where a digital sound programme service is provided in any area, the holding, by a person who runs a local newspaper or local newspapers as mentioned in paragraph 7(1), of two or more licences to provide in that area local radio services which for the purposes of paragraph 7 share a potential audience with each other or with each of the others shall, instead of being subject to the restrictions specified in paragraph 7, be subject to other restrictions specified in the order. U.K.

(2) For the purposes of any order under sub-paragraph (1), a person shall be treated as holding a licence if the licence is held by a person connected with him.

Textual Amendments

F10 Sch. 2 Pt. IV substituted (10.8.1996 for certain purposes, 1.11.1996 for certain further purposes and otherwise 1.4.1997) by 1996 c. 55, s. 73 Sch. 2 Pt. III para. 11 (with s. 43(1)(6)); S.I. 1996/2120, arts. 3, 5, Sch. 2; S.I. 1997/1005, art. 4

Additional restrictions applying where control of or by newspaper proprietor may operate against public interest U.K.

F11 9 (1) A licence to provide any of the services specified in sub-paragraph (4) may not be granted to a body corporate which is, or is connected with, the proprietor of a national or local newspaper if the relevant authority determine that in all the circumstances the holding of the licence by that body corporate could be expected to operate against the public interest. U.K.

(2) Subject to sub-paragraph (3), a body corporate which holds a licence to provide any of the services specified in sub-paragraph (4) shall not become, or become connected with, the proprietor of a national or local newspaper and continue to hold the licence if the relevant authority determine within the permitted period that in all the circumstances the continued holding of the licence by that body corporate operates, or could be expected to operate, against the public interest.

(3) Sub-paragraph (2) does not apply in any case where the body corporate holding the licence—

(a) is already the proprietor of some other national or local newspaper, or is already connected with such a proprietor, and

(b) does not become connected with any other person who holds a licence to provide any of the services specified in sub-paragraph (4).

(4) The services referred to in sub-paragraphs (1) to (3) are—

(a) a national Channel 3 service or Channel 5,

(b) a national radio service, and

(c) national digital sound programme services.

(5) Subject to sub-paragraph (6), in this paragraph “the permitted period” means a period beginning with the day on which the licence holder becomes, or becomes connected with, the proprietor of the national or local newspaper (“the relevant day”) and ending—

(a) in a case where the licence holder has, before the relevant day, notified the relevant authority that he will become, or become connected with, the proprietor of that national or local newspaper on that day, at the end of the period of three months beginning with the relevant day, or

(b) in any other case, at the end of the period of three months beginning with the day on which the licence holder notifies the relevant authority that he has become, or has become connected with, the proprietor of that national or local newspaper.

(6) The relevant authority may in a particular case, after consultation with the licence holder, notify him, before the time when the permitted period would (apart from this sub-paragraph) have ended, that the permitted period in that case is to be calculated as if the references in sub-paragraph (5) to three months were references to such longer period specified in the notification as the relevant authority reasonably consider necessary in the circumstances.

(7) Nothing in any of the preceding provisions of this Schedule shall be construed as affecting the operation of this paragraph or paragraph 10 or 11.

Textual Amendments

F11 Sch. 2 Pt. IV substituted (10.8.1996 for certain purposes, 1.11.1996 for certain further purposes and otherwise 1.4.1997) by 1996 c. 55, s. 73, Sch. 2 Pt. III para. 11 (with s. 43(1)(6)); S.I. 1996/2120, arts. 3, 5, Sch. 2; S.I. 1997/1005, art. 4

F12 10 (1) A licence to provide a regional Channel 3 service or a local radio service may not be granted to a body corporate which is, or is connected with, the proprietor of a national newspaper or a relevant local newspaper if the relevant authority determine that in all the circumstances the holding of the licence by that body corporate could be expected to operate against the public interest. U.K.

(2) Subject to sub-paragraph (3), a body corporate which holds a licence to provide a regional Channel 3 service or a local radio service shall not become, or become connected with, the proprietor of a national newspaper and continue to hold the licence if the relevant authority determine within the permitted period that in all the circumstances the continued holding of the licence by that body corporate operates, or could be expected to operate, against the public interest.

(3) Sub-paragraph (2) does not apply in any case where the body corporate holding the licence—

(a) is already the proprietor of some other national newspaper or is already connected with such a proprietor, and

(b) does not become connected with—

(i) any other person who holds a licence to provide a regional Channel 3 service or a local radio service, or

(ii) any person who holds a licence to provide digital programme services and is providing a service under that licence.

(4) Subject to sub-paragraph (5), a body corporate which holds a licence to provide a regional Channel 3 service or a local radio service shall not become, or become connected with, the proprietor of a relevant local newspaper and continue to hold the licence if the relevant authority determine within the permitted period that in all the circumstances the continued holding of the licence by that body corporate operates, or could be expected to operate, against the public interest.

(5) Sub-paragraph (4) does not apply in any case where the body corporate which holds the licence—

(a) is already the proprietor of some other local newspaper which is a relevant local newspaper in relation to the service referred to in that sub-paragraph, or is already connected with such a proprietor, and

(b) does not become connected with—

(i) any other person who holds a licence to provide a regional Channel 3 service or local radio service in relation to which that other local newspaper is also a relevant local newspaper, or

(ii) any person who holds a licence to provide digital programme services and is providing a service under that licence in relation to which that other local newspaper is also a relevant local newspaper.

(6) For the purposes of this paragraph a local newspaper is a “relevant local newspaper”, in relation to any service, if it serves an area which is to a significant extent the same as the coverage area of the service..

(7) In this paragraph “the permitted period” has the meaning given by paragraph 9(5) and (6).

Textual Amendments

F12 Sch. 2 Pt. IV substituted (10.8.1996 for certain purposes, 1.11.1996 for certain further purposes and otherwise 1.4.1997) by 1996 c. 55, s. 73, Sch. 2 Pt. III para. 11 (with s. 43(1)(6)); S.I. 1996/2120, arts. 3, 5, Sch. 2; S.I. 1997/1005, art. 4

F13 11 (1) A body corporate which holds a licence to provide digital programme services and is, or is connected with, the proprietor of a national newspaper or a relevant local newspaper, shall not begin to provide a digital programme service if the Commission determine before the end of the period specified in sub-paragraph (2) that in all the circumstances the provision of that service by that body corporate could be expected to operate against the public interest. U.K.

(2) The period referred to in sub-paragraph (1) is the period of three months beginning with the day on which the Commission are notified pursuant to section 19(3) of the 1996 Act of an agreement to provide the digital programme service, or such longer period beginning with that day as the Commission may in a particular case, after consultation with the licence holder, notify him during those three months as being the period which they reasonably consider necessary in the circumstances.

(3) Subject to sub-paragraph (4), a body corporate which is providing a digital programme service shall not become, or become connected with, the proprietor of a national newspaper and continue to provide the service if the Commission determine within the permitted period that in all the circumstances the continued provision of the service by that body corporate operates, or could be expected to operate, against the public interest.

(4) Sub-paragraph (3) does not apply in any case where the body corporate which is providing the digital programme service—

(a) is already the proprietor of some other national newspaper or is already connected with such a proprietor, and

(b) does not become connected with—

(i) the holder of a licence to provide a regional Channel 3 service or a local radio service, or

(ii) the holder of another licence to provide digital programme services who is providing a service under that licence.

(5) Subject to sub-paragraph (6), a body corporate which is providing a digital programme service shall not become, or become connected with, the proprietor of a relevant local newspaper and continue to provide the service if the Commission determine within the permitted period that in all the circumstances the continued provision of the service by that body corporate operates, or could be expected to operate, against the public interest.

(6) Sub-paragraph (5) does not apply in any case where the body corporate which is providing the digital programme service—

(a) is already the proprietor of some other local newspaper which is a relevant local newspaper in relation to the service referred to in that sub-paragraph, or is already connected with such a proprietor, and

(b) does not become connected with—

(i) the holder of a licence to provide a regional Channel 3 service or local radio service in relation to which that other local newspaper is also a relevant local newspaper, or

(ii) the holder of another licence to provide digital programme services who is providing a service under that licence in relation to which that other local newspaper is also a relevant local newspaper.

(7) In this paragraph—

(a) references to a relevant local newspaper shall be construed in accordance with paragraph 10(6), and

(b) “the permitted period” has the meaning given by paragraph 9(5) and (6).

Textual Amendments

F13 Sch. 2 Pt. IV substituted (10.8.1996 for certain purposes, 1.11.1996 for certain further purposes and otherwise 1.4.1997) by 1996 c. 55, s. 73, Sch. 2 Pt. III para. 11 (with s. 43(1)(6)); S.I. 1996/2120, arts. 3, 5, Sch. 2; S.I. 1997/1005, art. 4

F14 12 (1) Notice may be given to the relevant authority in accordance with this paragraph of proposed arrangements which might result— U.K.

(a) in the application of paragraph 9(2) to a body corporate which holds a licence to provide any of the services specified in paragraph 9(4),

(b) in the application of paragraph 10(2) or (4) to a body corporate which holds a licence to provide a regional Channel 3 service or a local radio service, or

(c) in the application of paragraph 11(1), (3) or (5) to a body corporate which holds a licence to provide digital programme services.

(2) A notice under sub-paragraph (1)—

(a) may be given by the licence holder or any other person appearing to the relevant authority to be concerned,

(b) shall state that the existence of the proposal has been made public, and

(c) shall be in such form as the relevant authority may require.

(3) The relevant authority may, at any time before making a determination under this paragraph, require the person who gave the notice to provide them with such further information with respect to the notified arrangements as they think fit.

(4) The relevant authority shall, as soon as reasonably practicable, determine whether in all the circumstances, if the notified arrangements were carried into effect, the continued holding of the licence by the body corporate could be expected to operate against the public interest.

(5) If—

(a) the relevant authority determine, in relation to any notified arrangements, that the fact referred to in sub-paragraph (4) could not be expected to operate against the public interest, and

(b) the notified arrangements are carried into effect within the period of 12 months beginning with the date of the determination,.

the relevant authority may not make any determination under paragraph 9(2), 10(2) or (4) or 11(1), (3) or (5) arising out of the carrying into effect of the notified arrangements.

(6) Sub-paragraph (5) does not prevent any determination under paragraph 9(2), 10(2) or (4) or 11(1), (3) or (5) being made if—

(a) any information given to the relevant authority in respect of the notified arrangements by the person who gave the notice is in any material respect false or misleading, or

(b) since the making of the determination there has been a material change of circumstances (other than such a change of which notice was given to the relevant authority under sub-paragraph (3) before the making of the determination).

(7) In this paragraph “the notified arrangements” means the arrangements mentioned in the notice under sub-paragraph (1) or arrangements not differing from them in any material respect.

Textual Amendments

F14 Sch. 2 Pt. IV substituted (10.8.1996 for certain purposes, 1.11.1996 for certain further purposes and otherwise 1.4.1997) by 1996 c. 55, s. 73, Sch. 2 Pt. III para. 11 (with s. 43(1)(6)); S.I. 1996/2120, arts. 3, 5, Sch. 2; S.I. 1997/1005, art. 4

F15 13 (1) The matters to which the relevant authority shall have regard in determining, for the purposes of paragraph 9, 10, 11 or 12, whether the holding of a licence by a body corporate which is, or is connected with, the proprietor of a newspaper operates, or could be expected to operate, against the public interest include— U.K.

(a) the desirability of promoting—

(i) plurality of ownership in the broadcasting and newspaper industries, and

(ii) diversity in the sources of information available to the public and in the opinions expressed on television or radio or in newspapers,

(b) any economic benefits (such as, for example, technical development or an increase in employment or in the value of goods or services exported) that might be expected to result from the holding of the licence by that body but could not be expected to result from the holding of the licence by a body corporate which was not, and was not connected with, the proprietor of a newspaper, and

(c) the effect of the holding of the licence by that body on the proper operation of the market within the broadcasting and newspaper industries or any section of them

(2) References in paragraphs 9, 10, 11 and 12 to the public interest include references to the public interest within any area of the United Kingdom.

Textual Amendments

F15 Sch. 2 Pt. IV substituted (10.8.1996 for certain purposes, 1.11.1996 for certain further purposes and otherwise 1.4.1997) by 1996 c. 55, s. 73, Sch. 2 Pt. III para. 11 (with s. 43(1)(6)); S.I. 1996/2120, arts. 3, 5, Sch. 2; S.I. 1997/1005, art. 4

• In relation to any determination under paragraph 11(1), (3) or (5), references in paragraphs 12 and 13 to the holding of the licence shall have effect as references to the provision of the service.

Textual Amendments

F16 Sch. 2 Pt. IV substituted (10.8.1996 for certain purposes, 1.11.1996 for certain further purposes and otherwise 1.4.1997) by 1996 c. 55, s. 73, Sch. 2 Pt. III para. 11 (with s. 43(1)(6)); S.I. 1996/2120, arts. 3, 5, Sch. 2; S.I. 1997/1005, art. 4

Restricted television services U.K.

F17 15 (1) The Secretary of State may by order— U.K.

(a) prescribe restrictions on the holding of one or more licences to provide restricted television services by a person who runs a national or local newspaper, and

(b) apply any of the provisions of paragraphs 9 to 13, with such modifications as may be specified in the order, in relation to the holding of a licence to provide a restricted television service.

(2) Any order under sub-paragraph (1) may provide that, for the purposes of any provision of the order, a person is to be treated as holding a licence if the licence is held by a person connected with him.

(3) In this paragraph “restricted television service” means a restricted service within the meaning of Part I of this act.

Textual Amendments

F17 Sch. 2 Pt. IV substituted (10.8.1996 for certain purposes, 1.11.1996 for certain further purposes and otherwise 1.4.1997) by 1996 c. 55, s. 73, Sch. 2 Pt. III para. 11 (with s. 43(1)(6)); S.I. 1996/2120, arts. 3, 5, Sch. 2; S.I. 1997/1005, art. 4