Hunt refers BSkyB bid to Competition Commission

News Corporation's bid for the remainder of BSkyB has been referred to the Competition Commission, just moments after the company announced the withdrawal of its proposed undertakings in the bid.

Culture secretary Jeremy Hunt had earlier today written to Ofcom and the Office of Fair Trading to ask whether the events of the past week in relation to News Corporation title News of the World, meant another look at the decision was necessary.

This included Ofcom considering whether a fit and proper persons test would impact on the merger and whether any of the new information causes a reconsideration of the advice Hunt has been given.

Just hours after the letters were published by the Department for Culture, Media and Sport, News Corporation announced it was withdrawing its proposed undertakings in the bid, which had included the spinning off of Sky News into a separate company.

Speaking in the House of Commons this afternoon Hunt announced that following this decision by News Corp the bid would be referred to the Competition Commission with immediate effect.

"Today’s announcement will be an outcome that I am sure the whole house will welcome," he said.

"It will mean that the Competition Commission will be able to give further full and exhaustive consideration of this merger taking into account all relevant recent developments."

In January, Ofcom reported to Hunt that he should refer the bid to the Competition Commission.

At the time Hunt said he believed the merger "may operate against the public interest in media plurality" but delayed his decision to enable News Corporation to offer further undertakings. These undertakings were ultimately accepted by Ofcom and Hunt.

However, given recent revelations and allegations surrounding News Corporation title the News of the World, in relation to phone hacking case and payments to police, Hunt had turned to the two bodies to ask whether they felt the need to look again at the decision.

Speaking in the House of Commons this afternoon Hunt said he would be writing to News Corp to inform them of his decision.

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