A submission from Trinity Mirror plc to the DCMS/DTI on the government's forthcoming communications white paper

He went on: "It is vital if we are not only to avoid social divisions over the new economy but to create a knowledge economy of the future, which is for everyone."

"We are undoubtedly doing well in the European league. But that is no reason for complacency. We have to try harder. That's why I've set the goal of Britain being the best place for e-commerce by 2002."

The ideal of an internet for the people and a free transfer of information and ideas is one few of us would not aspire to. But in reality, by 2005 there may be but a handful of providers who give a global nation access to an electronic world.

The stance of "no complacency" must be taken up now by those with the regulatory authority to guarantee competitiveness and plurality. The electronic, knowledge-based economy is open to exploitation in these early days and our submission to the departments of Culture Media and Sport and Trade and Industry holds this as a pressing concern.

Trinity Mirror is the largest publisher in the UK and the second largest in Europe. Our spread of interest stretches from national newspapers to regional titles, from trade magazines to exhibitions, from on-line publications to a national ISP. The communications world as we know it is developing and changing by the day. We are therefore delighted that the departments of Culture Media and Sport and Trade and Industry have invited comments from stakeholders on the reforms needed to ensure British companies like ours can take an active part.

Economies of scale in telephony and explosive change in the electronic means of communication have significantly lowered barriers of entry to our industry. While the government should do everything in its power to encourage expansion and growth it must also accept a challenge to the dichotomy that exists between the state of modern communications and the laws that determine cross media ownership. Newspapers are just one of many mediums that a mass population chooses to obtain its information from. The gradual shrinkage in our industry indicates that our established consumer base is turning to a vast array of alternative means. At the same time, the emergence of huge media organisations undefined Time Warner/AOL and more recently the Vivendi merger with Canal Plus and Seagram undefined indicates a convergence at a global level.

The slight relaxation in media ownership regulations brought about by the Broadcasting Acts of 1990 and 1996 was a helpful move in the right direction. However, we believe the time has come for the removal of all "cross-media" restrictions. British companies must be able to hold their position in an ever-converging market. To do this, they must be able to increase in scale and that will only be possible through consolidation.

Trinity Mirror believes the "20 per cent" rule limiting, inter-alia, ownership of terrestrial television licences by national newspapers; radio stations by national newspapers and local radio stations by local newspapers should be revoked.

Cross-media mergers should simply be subject to normal competition and merger rules with no media specific legislation.

In 1973 LBC became the first radio station to challenge the BBCundefineds 50-year radio monopoly. The Fair Trading Act was also enshrined in the statute books that year. Whereas the electronic communications industry is almost unrecognisable 27 years on, those same laws continue to govern newspaper mergers today.

Despite aiming to protect consumers from a concentration of ownership and a reduction in plurality, this 1973 Act could become detrimental to local newspaper groups at the very time when newspapers are facing threats to their viability from competing advertising routes to market. The legal context in which newspapers can or cannot consolidate leads to a distortion of the market. The timetable imposed as a natural consequence of mandatory references to the Competition Commission of simple newspaper mergers gives an unfair advantage in contested bids to non-newspaper owning parties. If newspaper groups are not allowed to consolidate they will be put at an irreversible competitive disadvantage. As foreign companies assimilate national heritage titles in their own quest for consolidation, local newspaper groups must be allowed to operate within a more stimulating environment.

Legislation enacted to protect plurality is in danger of becoming detrimental to its longevity.

Trinity Mirror argues that newspaper transfer provisions in the 1973 Fair Trading Act should be revoked and that normal merger rules should apply to newspaper consolidation.

Co-regulation and self-regulation are the most efficient mechanisms for promoting business best practice. Trinity Mirror has a positive belief in self-regulation of newspapers in the form of a body such as the Press Complaints Commission and believes that other regulatory authorities should adopt a close co-operative role where there is a potential crossover with technology or content.

Regulation of the internet and e-commerce is a concern and self-regulation of content should be adopted wherever possible, for example on-line publishing and information held on a portal. The internet should continue to be subject to general laws including those of defamation, copyright and obscenity. Service providers who become aware that they are storing infringing material should have a responsibility to remove that material or disable access to it. However they should not be liable for information transmitted along a communications network.

The initial findings of the OFTEL/OFT study into competition barriers to e-commerce are that competition issues in new market places are not likely to differ fundamentally from issues that regulatory authorities are already facing. They do, however, give consideration to the speed of regulation in such a fast-moving market place and the possibility of premature regulation stifling growth.

Supra-national businesses will try to avoid being restricted by country specific legislation. Threats to inward investment as a result of ill-judged regulation must also be a consideration for the two departments.

The Royal Commission on the press, 1947-1949 concluded that free enterprise was a pre-requisite of a free press. In the same way today, it would seem that free enterprise has so far acted as a pre-cursor to freedom in the provision of electronic communication. Open standards have enabled the development of a large number of content and e-commerce providers. However, anti-competitive behaviour at this early stage will prevent the market from developing and severely restrict plurality.

Moves by cable operators to limit internet access to walled gardens and prohibitive tendencies of determining which portal a user can or cannot have as his or her homepage are issues which must be considered immediately. When mass online communication becomes a reality, it may be too late to confront issues of access left unchecked now. The joint OFT and OFTEL report into competition in e-commerce repeatedly states that dominant players may emerge in these new markets and competition issues may arise.

Trinity Mirror argues that competition regulators should have the powers to maintain and openly enforce an open platform for service providers. Telecommunications companies and cable providers must not be able to create a bias for themselves and lock out any fledgling ISPs or portal providers. All internet users should have access to the whole of the World Wide Web and not be limited by the commercial interests of their local host.

The competition authorities should protect consumer choice from limitations imposed by those with proprietorial interests in technology in areas such as the default condition for WAP phones and listings on Electronic Programme Guides.

There should be no conflict between the frustrations felt over archaic laws governing modern newspaper ownership and consolidation and the pressing need to create the right environment for new and emerging e-commerce.

Both the DTI and the DCMS will be familiar with the newspaper industry's dissatisfaction with the current economic regulations that restrict our business. This remains the case and we would like the playing field leveled out.

We do, however, welcome attempts made by both departments to tackle the embryonic market place being created by the converging IT, communications and telecommunications industries. Emerging global services will shape the world we live and work in. Trinity Mirror's key interests include old and new media. They should both be given the best possible chance to succeed in a fiercely competitive age.

* Trinity Mirror believes the "20 per cent" rule limiting, inter-alia, ownership of terrestrial television licences by national newspapers; radio stations by national newspapers and local radio stations by local newspapers should be revoked. Cross-media mergers should simply be subject to normal competition and merger rules with no media specific legislation.

* Trinity Mirror argues that newspaper transfer provisions in the 1973 Fair Trading Act should be revoked and that normal merger rules should apply to newspaper consolidation.

* Trinity Mirror has a positive belief in self-regulation of newspapers in the form of a body such as the Press Complaints Commission and believes that other regulatory authorities should adopt a close co-operative role where there is a potential crossover with technology or content.

* Trinity Mirror argues that competition regulators should have the powers to maintain and openly enforce an open platform for service providers. Telecommunications companies and cable providers must not be able to create a bias for themselves and lock out any fledgling ISPs or portal providers. All internet users should have access to the whole of the World Wide Web and not be limited by the commercial interests of their local host.

* The competition authorities should protect consumer choice from limitations imposed by those with proprietorial interests in technology in areas such as the default condition for WAP phones and listings on Electronic Programme Guides.