Seanad debates

Thursday, 10 July 2014

Competition and Consumer Protection Bill 2014: Committee Stage

 

2:55 pm

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael) | Oireachtas source

The Senator should realise this has been a feature of competition law since 2002. The only issue here arose from an expert group on media mergers which looked at the way in which we handle mergers as they affect the media, therefore, competition law always has dealt with mergers. What we have here is a provision where there is a number of loops in dealing with a media merger. First, there is the competition test when one tests on competition grounds alone, whether this is a concentrated market and would the proposed merger represent a diminution of competition that would interfere with the public interest. There is the capacity to make that decision. If the competition commission decides that the merger does not offend competition rules, there is a second test already in Irish law which involves looking at whether the wider public interest in terms of diversity of content, plurality of ownership and so on, is served. That is a separate test. Under the existing law that test is exercised by me, as Minister for Jobs, Enterprise and Innovation, following an evaluation of the public interest by the Competition Authority. What is proposed is that in future that second element, the public interest test, would be conducted by a panel appointed by the Minister for Communications, Energy and Natural Resources involving the Broadcasting Authority. The reason for that was the belief that media mergers increasingly occur across a diverse range of communications, newspapers, radio, social media and so on and the Minister for Communications, Energy and Natural Resources would have access to better information, better opportunities to evaluate the public interest element than the Minister for Jobs, Enterprise and Innovation. That is one element of it. It also provides for consultation before the Minister makes his decision and an order is made. What is being done here is not new as media mergers have always been subject to a dual test, a competition test and a public interest test. We are setting a more modern set of criteria, a more consultative arrangement including consultation with the relevant Oireachtas committee, and the decision will ultimately be made by a Minister who has oversight across a range of media outlets that reflects the changing nature of media.

I believe the basis for this amendment, which lies in a report of the media mergers groups chaired by Mr. Sreenan, is the right way to proceed. I commend it to the House. Clearly the diversity of ownership of media is an important public interest in a democracy. Separate from measuring the market concentration or other measures that would be viewed from a very narrow competition perspective, there is a broader public interest in the merger of media outlets. It is correct that this should be reviewed, it speaks for itself. The Competition Authority itself has made pronouncements about the unsatisfactory nature of competition in this marketplace. There is a record of public concern, including by the Competition Authority, in respect of the healthy state of competition in this marketplace and, therefore, I believe this provision amendment is valid.

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