The Competition and Markets Authority (CMA) says the takeover of a number of local radio groups by Bauer “raises competition concerns.”
The acquisition of Lincs FM, UKRD and Wireless is currently under investigation and the CMA said that its primary concerns were how they could affect the future of First Radio Sales (FRS).
FRS currently sells radio advertising on behalf of more than 100 independent local stations and is the only firm providing the stations with access to national advertisers.
Following the first phase of its investigation, the CMA found that FRS may not be able to continue to stay in business, after Bauer buys a large number of stations which make up its customer base.
It stated that without FRS, some local stations could lose access to revenues from national radio advertising sales. This could in turn make it more difficult for them to compete at a local level and lead to “higher prices and a lower quality of service.”
The CMA also found competition concerns about Bauer acquiring key rivals to its current stations in Yorkshire, the West of England and West Midlands.
“About 90% of adults listen to the radio every week, and local radio remains an important way for advertisers to reach potential customers,” said Colin Raftery, Senior Director of Mergers.
“FRS is particularly important for independent local radio stations because it’s currently the only realistic way for them to reach national advertisers. That’s why we’re concerned that Bauer’s buy ups, which could lead to FRS exiting the market and local stations losing access to national advertisers, could damage competition.”
Bauer said that it would work with the CMA to address its concerns.
