Oireachtas Joint and Select Committees

Thursday, 15 May 2014

Select Committee on Jobs, Enterprise and Innovation

Competition and Consumer Protection Bill 2014: Committee Stage

1:05 pm

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I will start with the amendment itself. In considering plurality and diversity of content, our definition is taken in its entirety from the advisory group on media mergers report. The term "present" is more absolute than "prevalent" and would make the proper measure of diversity extremely complex. In the context of diversity, if everything that exists in the universe had to be considered, it would be an impossibly difficult test. The word "prevalent" was chosen by the advisory group as it offers a balanced approach. Otherwise, it would be too difficult to interpret.

The wider issue that Deputy Tóibín raises was considered at length by the advisory group. The group felt that specifying metrics in the legislation would be fraught with risk. In the first instance, the question of normal market mechanics arose. If the numbers of active market participants in a given media market were to reduce over time to the extent that the concentration metric was breached without a merger having taken place, then the next merger would have to be ruled out regardless of its merits. This would be particularly relevant for a country like Ireland that has a relatively small media market and where the application of reasonable limits on concentration could be undermined following the closure of a single media outlet.

Second, the question of which index to use also arises, something of emerging concern given the rise of online media. Already the question of how to measure cross-media impact arises. How does one accurately measure the relative weight of newspaper circulation, radio and television audiences and online page views or downloads? This is an issue of judgment that has to be applied and that is why we have a process of consultation, with expert groups assessing and advising.

The Deputy also raised a concern about whether this allows the whole thing to run away without the Oireachtas. What is now required is that the relevant Oireachtas committee is advised and notified of the merger. The Oireachtas committee is one of the bodies whose view is taken into account. The legislation requires that the Minister notifies the relevant Oireachtas committee and invites a submission from it and any such submission then has explicit recognition as one of those documents to which the Minister must give regard in coming to a decision. Of course, if a Minister comes to a decision, he or she must provide an order in the House too. The Oireachtas has influence throughout the process. As I said on Second Stage, seeking to pin down and define in very narrow metrics, even in the narrow competition area, never mind getting into the complexity of multiple media dimensions, is impossible. It is a matter of judgment at the end of the day.