Rupert Murdoch's News Corp has won unconditional approval from the European Commission for its bid to acquire pay-TV operator BSkyB but still faces scrutiny by British communications watchdog Ofcom.
News Corp, which also owns British newspapers the Sun, the News of the World and the Times and Sunday Times, wants to buy the 61% of BSkyB it does not already own for £7.8 billion to consolidate the business it helped build.
'I am confident that this merger will not weaken competition in the United Kingdom. The effects on media plurality are a matter for the UK authorities,' EU Competition Commissioner Joaquin Almunia said in a statement.
The Commission did not refer to concessions offered by News Corp earlier this month, indicating it had not accepted them as it did not see any concerns arising from the takeover.
Ofcom is now examining the deal to see if it would give News Corp too much control of the media in the United Kingdom, with the focus on content types, audiences, media platforms, control of media enterprises and future developments in the media landscape.
News Corp welcomed the news. It did not mention the Ofcom review.
Independent directors at BSkyB, which operates the 24-hour channel Sky News and provides pay-TV, broadband and telephony, have rejected News Corp's offer as too low.
Later, the BBC reported British Business Secretary Vince Cable told undercover reporters that he had 'declared war' on media magnate Rupert Murdoch and was going to win, excerpts of a tape of Mr Cable speaking.
Mr Cable ultimately has to decide on whether News Corp's bid can proceed.
There was no immediate comment from Mr Cable's Business Department.
News Corp said in a statement: 'News Corporation is shocked and dismayed at the reports of Mr Cable's comments. They raise serious questions about fairness and due process.'
The BBC said the comments made it difficult for Mr Cable to deal with the merger and raised doubts about whether he could remain in his post.
Mr Cable is one of the best known members of the Liberal Democrats, the junior partner in the Conservative-led government which took office in May.
British Finance minister George Osborne and Danny Alexander, chief secretary to the Treasury, hurried into the prime minister's residence in Downing Street after the news broke. They did not answer questions from reporters.
