The Irish Journalist


because it had ensured diversity within the regional media market. INM, whose majority shareholder Denis O’Brien owns the giant media group Communicorp, is now seeking to extend its control to a level which is unacceptable. In his submission the Irish Secretary said “The


National Union of Journalists strongly opposes further acquisitions by Independent News and Media Plc in this sector and believes the current application, if granted, will have negative consequences on the media industry on the island of Ireland, serving to reinforce the dominant position of Independent News & Media Plc on the Irish media market and granting to the majority shareholder an excessive degree of control and influence on the print, broadcasting and online media in Ireland to such an extent that it is deleterious to the market, undermining competition, damaging employment and crucially acts against the public interest.” The NUJ has argued the Commission must


consider the fact that all regional newspaper titles within Independent News & Media Plc operate


A long


battle for diversity


By Séamus Dooley Irish Secretary, NUJ


The NUJ has long been concerned at the failure of successive governments to ensure media diversity in Ireland and our objection to the acquisition of Celtic Media Group by INM is firmly rooted in union policy. It is worth noting that the Mergers, Takeovers and Monopolies Order, 1979 was introduced by Des O’Malley, Minister for Industry & Commerce in response to the expansion of Independent Newspapers into the regional newspaper market. Speaking in Dáil Éireann on 16 February 1995 Deputy O’Malley expressed concern at the influence of Independent Newspapers on the media landscape in Ireland.


He reminded Deputies “The dangers inherent in concentration of ownership in newspapers was recognised by me as far back as 1978 when, after the passing of the Mergers, Take-overs


2


under the control and direction of INM Regionals. INM regional currently comprises thirteen paid-for weekly regional newspapers published in counties Cork, Kerry, Dublin, Louth, Wexford, Wicklow, Carlow and Sligo. If the application is successful there would be 28


regional titles in the group, with additional reach into Westmeath, Cavan, Meath, Mayo and Offaly. The Irish Secretary said the Commission must


take into account the business model operated by Independent News and Media Plc. The restructuring of the business model allows cross- selling of advertising between titles within the national newspaper sector. The Commission must have regard for the potential of such developments across the regional newspaper sector. Such developments would seriously deplete the revenue streams of smaller media organisations and their existence at risk. Mr Naughten can take into account threats to


editorial diversity, factors which may not be considered by the Commission.


and Monopolies (Control) Act of that year, I made an order under the appropriate section applying the provisions of the Act to all transactions in newspapers and magazines in Ireland, [830] even if they fell below the threshold that was appropriate for notification. “I felt it necessary to do this because of my particular concern about the provincial market where in that year the Independent Group owned 16 titles, apart from its national titles. The order prevented it from acquiring any other provincial titles. If it had not been made, I have no doubt that Independent Newspapers would now own most of the provincial newspapers and would have closed many of them.” In 1996 the Commission on the Newspaper Industry was established to review the media industry after the collapse of the Irish Press group in May 1995. The Commission said that "any further reduction of titles or increase in concentration or ownership in the indigenous newspaper industry could severely curtail the diversity requisite to maintain a vigorous democracy."


It is worth noting that The Competition Authority (1992) advised against Independent Newspapers increasing its shareholding in the Tribune Group from 29.99% to a possible 53.09%. It also advised in 1995 against the purchase by Independent Newspapers of a 24.9% shareholding in the Irish Press plus a loan of £2m because of the anticompetitive aspects of both the 1992 and 1995 transactions.


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