A framework to approach benefits to consumers in Local Media Assessments

Prepared for Ofcom August 2010

Ofcom has recently published its draft Local Media Assessment Guidance which sets out Ofcoms proposed approach to providing the Office of Fair Trading with Local Media Assessments (LMAs) in merger cases involving local media firms. One of the areas that Ofcoms LMA may cover is Ofcoms views on the potential for a merger to produce relevant customer benefits, such as an increase in quality of media.

Ofcom has asked economic consultants DotEcon to suggest how Ofcom might assess these impacts. The report:

• discusses the concept of other consumer benefits and quality,
• looks at the potential ways that media mergers might benefit consumers in these ways ,
• proposes possible metrics and discusses how these metrics may help Ofcom prepare an LMA to inform the OFTs assessment of a local media merger.

Ofcom is not bound to use any of the approaches set out in the report. Stakeholders should refer to the Local Media Assessment Guidance for an overview of how Ofcom will approach LMAs.

The full document is available below