Chief Executive Tung Chee-hwa has been urged not to grant an exemption to Tom.com for it to buy a 32.75 per cent stake in ATV, so as to ensure fair competition and a free flow of information.
In a letter to Mr Tung, Democratic Party chairman Martin Lee Chu-ming said he was concerned about the deal, which would allow tycoon Li Ka-shing to extend his influence from radio to free-to-air television.
The deal requires a special exemption from Mr Tung for non-compliance with rules covering the industry that prohibit cross-ownership of media organisations. Mr Li's Hutchison Whampoa and Cheung Kong (Holdings) wholly own Metro Broadcast. They hold 43.3 per cent of Tom.com. Any exemption should only be given on the grounds of public interest and needs.
Mr Lee said: 'Clearly, it [the ATV deal] will be a breach of the cross-ownership provisions.'
The party chairman said they fully supported the idea of restricting cross-ownership of media because it would ensure diversification in the market, fair competition and the development of new media.
'Ultimately it is the audience and public who benefit. Unless there is strong public interest involved, the policy [of cross-ownership] must not be compromised,' Mr Lee said.
