GWR executive chairman Ralph Bernard has attacked the government's decision to refer his company's purchase of Galaxy 101 to the Competition Commission, claiming the decision casts serious doubts on the de-regulatory nature of the Communications Bill, writes Leigh Holmwood
GWR bought the West Country dance station from Chrysalis Radio in September for£12.5m as part of a complex deal, folding it into a new joint-venture co-owned by Scottish Radio Holdings. The station was this week relaunched under GWR's Vibe dance brand.
However, competition minister Melanie Johnson referred the acquisition to the Commission on Monday (13 January) over fears that it could ?substantially reduce' competition for local radio advertising in the Bristol and Bath area. GWR already has a strong position in the region.
Bernard said the move sent out the wrong signal, particularly as the government was planning to reduce radio regulation in the forthcoming Communications Bill - notably the two plus one local radio arrangement. ?Her decision appears at odds with the overall thrust of government policy,' he said
He added that the company would put up a ?robust defence' to the charge. A decision is expected in April.
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