In an era where information is power, the independence of the press is more vital than ever. Recognising the growing geopolitical risks posed by foreign state ownership of UK media, the UK Government has taken decisive steps to protect the integrity of British newspapers and news periodicals.
Background: The Foreign State Influence (FSI) Regime
In March 2024, the UK introduced the Foreign State Intervention in Media (FSI) regime through amendments to the Enterprise Act 2002. This regime was designed to prevent foreign states from gaining direct or indirect control over UK newspaper enterprises. It introduced:
- Ownership thresholds
- Control tests
- Mandatory reporting requirements
These measures apply to mergers involving UK newspapers and periodicals, enabling government intervention where foreign state investors (SOIs) seek influence.
Key Provisions of the Current Regime
- 5% Notification Threshold:Â Any SOI acquiring more than 5% of shares or voting rights in a UK newspaper must notify the Secretary of State (via DCMS) within 14 days.
- 15% Ownership Cap:Â SOIs are capped at holding 15% of shares or voting rights in UK newspapers or magazines.
- Aggregation Rule: If multiple SOIs from the same or different countries collectively exceed 5% ownership in a non-listed company, their holdings are aggregated – even if held through subsidiaries or nominee accounts.
These rules aim to ensure transparency and prevent covert influence through fragmented ownership structures.
New Consultation: Proposed Amendments (July 2025)
On 16 July 2025, the UK Government launched a new consultation to refine the FSI regime. The consultation, open until 16 September 2025, seeks to:
- Enhance transparency
- Reduce compliance burdens for legitimate institutional investors
- Clarify the scope of existing exceptions
Proposed Changes
- Aggregate 15% Cap for Multiple SOIs
- A new rule would apply a combined 15% cap where multiple SOIs from the same foreign state invest in a UK newspaper enterprise.
- Exemption for Listed Companies
- To avoid disrupting public markets, the government proposes excluding SOI shareholdings under 5%Â in companies listed on recognised exchanges (e.g., LSE, AIM) from the aggregation rule.
These changes aim to strike a balance between national security and the UK’s attractiveness to global investors.
Have Your Say
The government is inviting feedback on the proposed changes. If you have views or concerns, you can submit your comments by emailing: foreign-state-news@dcms.gov.uk.
