The Great Debate UK

from Nicholas Wapshott:

The analogue titans’ last gasp against the digital giants

amazon-hachette

Amazon’s bullying of the book publisher Hachette and the uninvited bid by Rupert Murdoch’s 21st Century Fox to swallow rival TimeWarner has caused some economists and commentators to ask, why are such aggressive moves not attracting the attention of the Justice Department’s trust-busters? Both moves are textbook examples of how monopoly power can abuse -- or so they would have seemed not long ago.

At stake are the benefits that consumers and employees alike enjoy from the proliferation of competing companies operating in a free market. For markets to work freely and fairly, there must be enough companies competing; when the critical mass of businesses sinks below a certain number, monopolies occur, which is bad for consumers. When that happens, governments in mature societies intervene to prevent over-consolidation and protect people from exploitation.

This isn’t socialism; it is how the free market is meant to work. It is the ordered way of doing business advocated by free-market gurus like Friedrich Hayek, who believed the integrity of free enterprise was paramount to ensure that prices are arrived at fairly.

Amazon CEO and Chairman Bezos receives the Citation of Merit on behalf of the Apollo F-1 Search and Recovery Team during the 110th Explorers Club Annual Dinner, at the Waldorf Astoria in New YorkBut after more than a century of intervening to keep markets honest, U.S. antitrust legislation is proving inadequate to the task. When industries and markets were clearly defined, it was easy to see what needed doing. When John D. Rockefeller’s Standard Oil snaffled the gasoline market, the Supreme Court, in 1910, declared it an illegal monopoly -- and demanded it be broken up.

from The Great Debate:

Punch Sulzberger and the trouble with media dynasties

It is easy to imagine the look on the faces of Rupert Murdoch’s children when they read the obituaries of New York Times owner Arthur “Punch” Sulzberger, whose father thought him too stupid to run the company. Particularly when they came to the line: “It’s impossible to be an assistant to your father.”

Rupert Murdoch’s eldest son, Lachlan, is exiled to Australia after complaining his father wouldn’t let him do his job at News Corp. His daughter Elisabeth’s movie company, Shine, may be owned by News Corp, but she lives in London and keeps her interfering father at arm’s length. And after disappointing his old man by failing to smother the phone-hacking scandal at his British papers, James is scrabbling around at corporate headquarters on Sixth Avenue in New York, trying to make it work at his new job leading the company’s television interests – everything, that is, except his father’s “fair and balanced” baby, Fox News.

from The Great Debate:

Is Murdoch trying to sink Romney?

Rupert Murdoch should never go on holiday. It only makes him grumpy. He returned last month from cruising on his yacht off the coast of Croatia looking for a scrap. When Steve Jobs invented the iPad, he could hardly have imagined the havoc caused by one crabby old geezer letting rip on Twitter. Murdoch, a genius with the snappy tabloid headline, didn’t need all 140 characters to reduce Romney’s campaign to toast. “Tough O Chicago pros will be hard to beat unless [Romney] drops old friends from team and hires some real pros,” he wrote, adding the fatal one-word zinger: “Doubtful.”

Romney met Murdoch recently for a secret chat about how things were going on the campaign trail, but the relaxed Republican nominee presumptive, perhaps with his lavish family vacation at Lake Winnipesaukee, New Hampshire, on his mind, said he thought everything was just dandy. As Murdoch’s editors know to their cost, when the antipodean grouch asks how things are going it means he thinks things are going badly. As Romney’s minders did not issue a handout about the disastrous meeting, the lazy fourth estate did not know it was going on and so did not report it. But Murdoch took to his Twitter account to let the world know he was NOT HAPPY.

from The Great Debate:

Hypocrisy taints Murdoch grilling

Watching Tony Blair appear this week before the British judicial inquiry into press standards in London has left me feeling a little queasy. What began as an open-minded investigation into how to protect individuals from the snooping of the press in the age of the Internet has turned into a show trial to shame politicians who fell under the spell of Rupert Murdoch.

Now, heaven knows, I’m no apologist for Murdoch. His cynical approach to his readers and viewers and employees belies the fact that he is descended from sternly moral Scottish Presbyterians. He declares that the buck stops with a newspaper owner when one of his papers or journalists or printers fouls up, but when widespread illegality happens in his name, right under his nose, he forgets his fine words and lets it be known he has no intention of stepping down from his dual role of CEO and chairman of News Corp.

from The Great Debate:

Reprimand won’t stop Murdoch’s contempt

The headlines screaming from London tell the story: Murdoch “unfit” to run News Corp. The Commons committee that summoned the 81-year-old media magnate to explain how his newspapers came to hack the phones of everyone from Prince William to Paul McCartney has given its damning verdict.

Rupert Murdoch “turned a blind eye and exhibited willful blindness to what was going on in his companies” and his instinct “was to cover up rather than seek out wrongdoing and discipline the perpetrators.” The bottom line? “Rupert Murdoch is not a fit person to exercise the stewardship of a major international company.” So much for Murdoch’s attempt to pose as an affable old codger with too much on his mind to notice the lawbreaking done in his name. So much for, “This is the most humble day of my life.”

from The Great Debate:

Murdoch’s tweets can’t save his tottering empire

On the night Queen Elizabeth scampered back from her Scottish castle to address an angry crowd outside Buckingham Palace – the crowd protesting she hadn’t paid enough respect to the memory of Princess Diana, killed in a car crash the week before – Rupert Murdoch was in the newsroom of the London Times. “There’s your headline,” he told the editor in charge. “Queen Saves Neck!” It was a perfect tabloid headline for a perfect tabloid story.

That Diana, named after the goddess of hunting, should die hounded by a pack of snap-happy paparazzi added a vein of irony to the story of her tragic life. A similar irony informs the scandal engulfing Murdoch. The biter has been bit, a fact clearly on display when Rupert and his son James, arm in arm with their flame-maned employee Rebekah Brooks, were shoved and jostled in a London street by the newshounds of Fleet Street. Hauled before a House of Commons committee, the usually unrepentant mogul looked dented when he uttered the phrase that will litter his obituaries: “This is the most humble day of my life.”

Could the Murdochs be the saviours of journalism?

Photo

By Kathleen Brooks. The opinions expressed are her own.

When newspaper moguls are grabbing the headlines something has gone spectacularly wrong, but are we forgetting what the Murdochs have done to preserve print journalism?

Anyone who has followed the unfolding story over the News of the World phone hacking saga will be rightly outraged that a newspaper – a journalist – could think it was perfectly acceptable to get a story from hacking into someone’s voice mail.

from Breakingviews:

News Corp’s UK static could yet hit U.S. airwaves

By Reynolds Holding
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

NEW YORK -- News Corp's UK static could yet hit U.S. airwaves. Phone-hacking and bribery charges already threaten Rupert Murdoch's stake in pay-TV firm British Sky Broadcasting. But his ownership of 27 Fox Broadcasting stations in America, home to hit shows like "The Simpsons" and "American Idol," could also be in jeopardy if the accusations prove true.

from Breakingviews:

James Murdoch shouldn’t be kicked out of BSkyB

By Hugo Dixon
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

James Murdoch shouldn’t be kicked out of BSkyB. Some observers want to use the Murdoch clan’s troubles at News International, their UK newspapers company, to run them out of town completely. But BSkyB, the pay-television group, is a separate business. And Murdoch Jr has done a good job first as its chief executive and now as its chairman.

from Breakingviews:

Hapless former WSJ owners could yet sting Murdoch

By Rob Cox and Reynolds Holding
The authors are Reuters Breakingviews columnists. The opinions expressed are their own.

LONDON/NEW YORK -- Add to Rupert Murdoch's list of potential headaches a blast from the past: the Bancroft family. The media mogul's UK newspaper scandal has upset some members of the family who haplessly gave in to News Corp's $5 billion offer to buy Dow Jones in 2007. It's hard to feel much sympathy. But the pact they forged to ensure the Wall Street Journal's integrity gave a special committee powers that could embarrass Murdoch further.

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