Global ordered to sell radio stations in seven areas, including central Scotland

The Competition Commission has confirmed that Global Radio will have to sell its Capital or Real station in central Scotland to address concerns over advertising costs.

The watchdog’s final ruling confirms a provisional report in February, which said Global’s acquisition of Real and Smooth from Guardian Media Group (GMG) could lead to higher prices for advertising in seven parts of the UK.

Along with selling either Capital or Real in central Scotland, the group will have to offload stations in the East Midlands, northern England and Wales.

Simon Polito, deputy chairman of the Competition Commission, said: “Radio advertising prices are negotiated and smaller and medium-sized companies in particular rely on the presence of competing commercial stations in their local areas to negotiate a good deal.

“Requiring Global to sell stations to new owners in the affected areas will preserve competition and protect these advertisers’ interests.”

Real Radio Scotland, which began life in 1994 as Scot FM, became part of GMG in 2001 and was sold to Global – owner of Classic FM and Heart – as part of a £50 million deal last summer.