New Rules on Newspaper Mergers and Foreign Control: What You Need to Know

The UK government has introduced new regulations under the Enterprise Act 2002 to address mergers involving newspaper enterprises and foreign powers. The Enterprise Act 2002 (Mergers Involving Newspaper Enterprises and Foreign Powers) Regulations 2025 are designed to maintain the independence of UK newspaper enterprises from undue foreign influence.

Key Points:

1. Objective: The regulations aim to prevent foreign powers from controlling or influencing UK newspaper enterprises through mergers, protecting the integrity and independence of the press.

2. Commencement: These regulations were enacted on July 23, 2025, and are effective immediately. However, certain provisions are retroactively effective from March 13, 2024.

3. Scope: The regulations apply across England, Wales, Scotland, and Northern Ireland.

4. Foreign Power Influence: The rules specify conditions under which a foreign entity might control or influence a newspaper enterprise. This includes holding shares or voting rights that could impact the policies of the newspaper.

5. Exemptions: Two major exemptions are outlined:

   • State-Owned Investor Clause: If a foreign power indirectly holds shares or voting rights through a state-owned investor, it is not considered to have control if the investor's holdings do not exceed 15%.
   • Associated Persons Clause: If shares or voting rights are held by persons associated with a foreign power (e.g., relatives, trustees), and these holdings are minimal, the foreign power is not deemed to have control.

6. Investment Funds: The regulations also address situations where shares are held via investment funds, ensuring these funds meet specific diversity and ownership conditions.

7. Review and Amendments: The regulations also include a mechanism for reviewing decisions related to mergers under the specified parts of the Act.

8. Impact Assessment: A full impact assessment has been conducted to evaluate the implications of these regulations on businesses and public sectors. This assessment can be accessed on the UK government's website or obtained in print from the Department for Culture, Media and Sport.

These regulations are part of a broader effort to safeguard the UK's media landscape from potential foreign influence, ensuring that newspapers remain independent and free to report without external pressures.