US regulator wants probe into News Corp acquisition of Dow Jones

by Daniel Farey-Jones, Brand Republic 26-Oct-07, 09:00

LONDON - News Corporation's $5.6bn acquisition of Wall Street Journal publisher Dow Jones should be investigated by the US media regulator, according to one of the regulator's five commissioners.

News Corp boss Rupert Murdoch's purchase of the international business publisher was generally expected not to face scrutiny from the media regulator, the Federal Communications Commission.

However, one of the FCC's five commissioners, Democrat Michael Copps, has written to his Republican FCC chairman Kevin Martin to call for an examination of the deal.

"If approved, this transaction would leave News Corp in control of a Big Four broadcast network [Fox] and two of the nation's five largest newspapers [the Wall Street Journal and the New York Post], as well as a vast collection of cable channels, satellite networks, motion picture studios and publishing outlets," Copps said.

"For residents of the New York metropolitan area, it will also mean that a single company operates two of the area's most popular television stations and two of its most popular newspapers."

News Corp also owns local New York TV station WNYW-TV.

A spokeswoman for Martin's office declined to comment.

Copps is also opposed to the FCC's efforts to relax America's media ownership restrictions.

News Corp's Dow Jones acquisition is expected to face examination from another general regulator, either the US Justice Department or the Federal Trade Commission.

In the UK, News Corp subsidiary BSkyB is awaiting the results of the Competition Commission's probe into its purchase last year of a 17.9% shareholding in terrestrial broadcaster ITV.