THE BROADCASTING Commission of Ireland (BCI) is set to scrutinise Denis O’Brien’s ownership of various national and local radio stations here after deciding yesterday that his recent appointment of three associates to the board of Independent News & Media raised issues about his cross-media ownership.
BCI chief executive Michael O'Keeffe told The Irish Timesyesterday that its board had concluded yesterday that the appointment by Mr O'Brien of three directors to the board of INM gave him a "substantial interest" in the listed newspaper group and raised issues about his control of various media in Ireland.
“The decision was made and [Mr O’Brien’s] Communicorp have been notified and invited to make a submission on this,” Mr O’Keeffe said.
The BCI has power to revoke licences, request their divestiture or stop media mergers although sources close to Mr O’Brien have always insisted that the structure of his arrangements at INM poses no threat to his radio licences.
Mr O’Brien’s Communicorp group owns national radio stations Today FM and Newstalk, 98FM and Spin in Dublin and regional station Spin SouthWest.
He owns 26 per cent cent of INM and recently appointed long-time business associate Leslie Buckley, financier Paul Connolly and Communicorp chair Lucy Gaffney to the board of the listed newspaper group following a rapprochement with Sir Anthony O’Reilly and his family.
The cross-ownership issue was considered by the BCI last year in light of Mr O’Brien’s purchase of Today FM and his continued stakebuilding in INM, where he is now the second-largest shareholder.
At the time, however, Mr O’Brien did not have any board representatives with INM and was considered a dissident shareholder by INM and Sir Anthony. As a result, the BCI decided there was no case to answer.
The BCI’s remit extends only to Mr O’Brien’s broadcasting assets. It is legally obliged to promote the plurality of media ownership and must guard against any single person or group having control of, or substantial interests in, an undue amount of communications media.
A spokesman for Communicorp confirmed that it has had contact with the BCI on the issue but declined to comment further on the matter.
