BSkyB Must Undertake Clean Feed Guarantee For Open Takeover To Proceed

The proposed acquisition of British Interactive Broadcasting Holdings (BiB), which operates the interactive TV service Open, by BSkyB (see BSkyB Takes Control Of Open, Plans To Improve Look, Feel and Services) should be allowed, providing the satellite broadcaster agrees to provide a clean feed of premium TV to rival distributors, quelling competition concerns.

Announcing the decision, which has taken into account advice from the Director General of Fair Trading (DGFT), the minister for consumers and corporate affairs explained that the proposed purchase had caused concern because, “There is a potential for BSkyB to provide premium pay TV channels to rival distributors in a form that contains interactive elements which do not work properly on other platforms. This could harm the commercial interests of rival distributors and thereby reduce consumer choice.”

The bottom line for BSkyB is that, in order to secure the deal, it will have to agree to provide a “clean” feed, in other words a version of the channel without the interactive elements, of premium channels to its rivals. Sky have said that they “welcome” the decision, saying, “Following this decision, eight of the nine conditions imposed by the European Commission on the original BiB joint venture will fall away and Sky already provides a clean feed of its premium TV channels under the remaining EC condition.”

Interested parties have been requested to make their views on the measures known to the Office of Fair Trading by 19 October. The DGFT has been asked to seek the undertaking from Sky and report back by 8 November.

Office of Fair Trading: 020 7211 8000

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