‘Pernicious’ Leveson-era law scrapped in victory for newspapers

A “pernicious” law that would have forced news publishers to pay the legal costs of people who sued them has been scrapped as part of an overhaul of broadcasting legislation.

Section 40 of the Crime and Courts Act 2013, which was drawn up in the wake of the Leveson inquiry, would have forced newspapers not signed up to an approved regulator to pay both sides’ costs in any legal proceedings, regardless of the outcome.

The punitive measures were never brought into force but were backed by high-profile supporters of the Hacked Off group, including Gary Lineker and Hugh Grant.

They were met with widespread opposition from newspaper groups and press freedom advocates, however, while the Government admitted they posed “a threat to the freedom and sustainability of the press”.

The controversial law has now been officially repealed after the Conservative Party pledged to do so in its 2017 manifesto.

Owen Meredith, chief executive of the News Media Association, welcomed the move, saying: “The repeal of this pernicious piece of legislation will be a welcome step forward for press freedom in this country.”

It came as part of a raft of changes under the much-delayed Media Bill, which is aimed at helping the UK’s public service broadcasters (PSBs) – including the BBC, ITV, Channel 4, Channel 5 – compete with deep-pocketed streaming rivals.

Under the reforms, Ofcom will be handed powers to regulate streaming giants such as Netflix and Disney to help protect audiences from harmful material such as misleading health claims.

Viewers will now be able to complain to the regulator about shows, while streaming services will face fines of up to £250,000 or even a total UK ban if they fail to adhere to new rules.

Other reforms include ensuring that PSBs can be easily found on smart TVs, set-top boxes and streaming sticks.

The bill no longer includes plans to privatise Channel 4 after the move was dropped by the Government earlier this year, but will remove a ban on the broadcaster being allowed to make its own TV shows.

Tech giants including Amazon and Google will also be required to ensure access to all licensed UK radio stations on smart speakers, and will be banned from charging stations a hosting fee or inserting their own adverts into programming.

Culture Secretary Lucy Frazer said: “These new laws will level the playing field with global streaming giants, ensuring they meet the same high standards we expect from public service broadcasters and that services like iPlayer and ITVX are easy to find however you watch TV.

“Our Bill will give these brilliant broadcasters and our legendary radio industry the tools to keep doing what they do best - nurturing the creative talent and skills that fuel the UK’s booming production industry, whilst making outstanding shows that we can all enjoy.”