Lords seeking curb on power of Murdoch's media empire

Peers are preparing to clash over the detail of the British government's Competition Bill next week, amid calls to curb the power…

Peers are preparing to clash over the detail of the British government's Competition Bill next week, amid calls to curb the power of Mr Rupert Murdoch's media empire.

The Liberal Democrats peer, Lord McNally, and Viscount Astor, for the Tories, have tabled an amendment to the Bill when the proposals reach report stage in the Lords on Monday. It is aimed at protecting British newspapers from the aggressive price wars started by the London Times, which is owned by Mr Murdoch's media company, News Corporation.

The London Independent and the Daily Telegraph have suffered most from "predatory pricing". In London the Times is sold for 35p, on Saturdays for 20p, compared to 45p for the Telegraph and the Independent. On Saturday the Telegraph is sold at 75p while the Independent is sold for 70p.

Mr Murdoch's media interests in Britain include ownership of the Times and the Sun, a traditionally anti-Labour tabloid which jumped ship to New Labour in the run-up to last year's general election. News Corporation is the biggest shareholder in the satellite channel, BSkyB.

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In a signal of the battle ahead the government has imposed a three-line whip against the amendment, effectively ordering its peers to vote down the proposal. Early indications point to a number of peers defying the whip to vote with the rebels.

The Competition Bill, which will prohibit anti-competitive agreements and the abuse of a dominant position in the media and entertainment industry, is regarded by the Tories and the Liberal Democrats as a weak piece of legislation lacking the teeth to address serious abuse of power.

Even some veteran Labour peers, the former deputy leader of the party, Lord Hattersley, among them, have serious misgivings about the strength of the proposed legislation.

Warning the government about the "predatory instincts" of Mr Murdoch, Lord Hattersley said this week that given the opportunity he would "push on towards his dream of media monopoly. If that happens, we could save the expense and tedium of a general election by simply asking Rupert Murdoch which prime minister he would prefer to see in Downing Street."