A £31.5 million takeover bid by Ulster Television for three commercial radio stations in Cork has been blocked by the Independent Radio and Television Commission (IRTC).
The regulator ruled that the UTV plan would be in breach of commission policy that stipulates existing media companies cannot hold more than 27% of another radio service.
It rejected an application by County Media - the parent company of the three Cork stations - for a change of company ownership.
But the commission left the door open for a possible reversal of their decision by confirming a review of overall policy on radio station ownership in April - indicating that the change-of-ownership application could be reconsidered in the context of the review.
In a statement, the commission said there were many positive aspects of the proposed involvement of the UTV involvement in the Cork radio stations and welcomed the Northern Ireland company's "forthright and thorough approach".
The IRTC added: "Our policy is to favour a strong local representation in the ownership structures of local radio services.
"This has been important to the local character the service, and has been one of the key factors in ensuring the success of local radio.
"The commission is of the view that to approve the application involves a fundamental change in its policy."
PA