Cable operator NTL and satellite TV group BSkyB yesterday criticised the Office of Fair Trading for its lengthy process in electing not to make a decision about a programming deal between the two groups, opting instead to simply close the file.
The proposal from Sky and NTL was to allow the wholesale of premium content from BSkyB to the cable group at a discounted rate. The deal was seen as something of a breakthrough as TV companies that buy Sky’s content currently do so at very thin margins.
The OFT is more broadly investigating whether BSkyB’s position in this area is anti-competitive and is expected to find that this is the case (see OFT Proposes Ruling Against BSkyB), opening the way to legal action from the likes of NTL, Telewest Communications and ITV Digital, all of which buy Sky programming content (see Carlton And Granada Plan To Sue BSkyB, Says Report).
Despite being given the deal for approval in October 2000, the OFT has taken until now to decide to simply close the file without decision. “It is disappointing that, through regulatory inertia, commercial progress is being impeded,” says Sky.
Nevertheless, the two groups have said that they are continuing discussions on a range of further possible agreements. Both companies have lamented the lack of timely response from the UK competition authorities.
