Murdoch’s bid for BSkyB faces further probes

The UK media watchdog Ofcom has recommended that the Rupert Murdoch-run News Corporation's takeover bid for broadcaster BSkyB should be referred back to the Competition Commission for further investigation.

In a development that was widely expected and confirmed by the BBC on Thursday, the communications regulator is understood to have recommended further investigation into News Corp's plan to buy 61-per cent of the satellite broadcaster it does not already own.

Ofcom's report was issued to the department for culture, media and sport on the last day of 2010, but it has not been formally published. OfCom wants an inquiry into whether the £7.5 billion deal would restrict choice for British viewers and readers.

Ofcom said it would not be commenting on the report, as it remained confidential, while a spokesman for the culture department said it would not comment on "speculation". However, it has been widely accepted as fact by the UK media.

Business secretary Vince Cable asked Ofcom to advise whether the plans would restrict the range of UK media voices. However the prime minister passed responsibility for a final ruling to culture secretary Jeremy Hunt after Cable was recorded by undercover journalists saying he had "declared war" on News Corporation's owner, Rupert Murdoch.

While News Corp has been given access to the report ahead of publication, full details will not be made public until Hunt makes a final decision on whether to refer the proposed buyout.