Virgin Media Launches Legal Challenge To Sky-ITV Share Ruling

Virgin Media is to appeal against the Competition Commission’s ruling that Sky must reduce its stake in ITV, saying that it does not go far enough.

In a statement, it said: “While Virgin Media strongly supports the Competition Commission’s conclusions that the acquisition has led to a substantial lessening of competition, it is appealing the Competition Commission’s recommendation that a reduction of BSkyB’s stake in ITV to 7.5% is adequate to address this problem.”

Virgin Media is also appealing the Competition Commission’s conclusions that the acquisition has not materially affected plurality in UK media.

It added: “BSkyB’s stake in ITV is exactly the kind of scenario that the media plurality provisions of the Enterprise Act 2003 were designed to address.

“This is the first time that these rules have been tested and Virgin Media believes the Competition Commission has made significant errors in interpreting and applying these rules.

“If not corrected, this error will undermine the future efficacy and objectives of the public interest regime set out in the Act.”

The move follows last week’s announcement by BSkyB that it is appealing against the decision, intending to challenge “key conclusions” of the Commission’s report (see Sky Confirms Legal Challenge To ITV Share Ruling).

Sky has been ordered to reduce its stake Sky because the Commission concluded it represented a “substantial lessening of competition” (see Sky Told To Reduce ITV Stake To Below 7.5%).

Sky acquired the 17.9% stake in ITV in November 2006 for £940 million (see Branson Bites Back At Sky’s Swoop On ITV)

Virgin Media: www.virginmedia.com Sky: 08702 40 40 40 www.sky.com