• Text size      
  • Send this article to a friend
  • Print this article

Advert prices may rise after radio takeover

GLOBAL Radio's takeover of GMG Radio could push up advertising prices in central Scotland and six other areas of the UK where the two firms' stations overlap, the Competition Commission has concluded.

Global, the operator of stations including Capital FM, Heart and Classic FM, snapped up GMG, the company behind the Real and Smooth brands, in a £70 million deal last year.

Competition Commission deputy chairman Simon Polito said: "The advertisers most likely to lose out from this deal are those who do not use national media agencies, and so includes smaller and medium-sized companies.

"These advertisers rely on the presence of competing commercial stations in order to negotiate a good deal."

The findings may force Global to sell stations in areas where the two firms overlap.

The commission is opening a consultation on its provisional decision, which will run until March 6.

Contextual targeting label: 
Unknown

Commenting & Moderation

We moderate all comments on HeraldScotland on either a pre-moderated or post-moderated basis.
If you're a relatively new user then your comments will be reviewed before publication and if we know you well and trust you then your comments will be subject to moderation only if other users or the moderators believe you've broken the rules

Moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours. Please be patient if your posts are not approved instantly.

140798