MEDIA PERSPECTIVE: Media shake-up in US should sound a warning for Britain.(media ownership laws)

First war. Now media. Where America goes, Britain's on the other end of the leash. So when the US voted on Monday in favour of sweeping changes to its media ownership rules, any hope of moderates here curbing the expanse of our own Communications Bill seemed to recede faster than a 'witness of truth' in the Beckham kidnap case.

America's Federal Communications Commission voted 3-2 in favour of dramatic new legislation designed to reflect the new media world order by, erm, allowing the established players to become more established.

The new US legislation means that the country's biggest media players can now get a bit bigger. Fox, CBS and NBC can nudge up to 45 per cent of the national audience from the current 35 per cent limit. Rules preventing companies owning a newspaper and a TV or radio station in the same local market have also been lifted. In a blinding bit of American logic, the FCC chairman, Michael Powell, said the new rules would promote diversity and competition.

Wall Street has welcomed the changes because of the deal-making to follow.

With organic growth hard to magic, piling on shareholder value through acquisition is the only route left.

Viacom and News Corp are likely to be key movers now the binds are off; in fact, Viacom and News Corp's Fox Entertainment have already bust the 35 per cent limit.

But America being America, these changes have been attacked by activists ...