BSkyB Could Face Legal Action From Rivals

BSkyB faces the prospect of being sued by its rivals after the Office of Fair Trading (OFT) said that it believed the satellite operator had behaved in an anti-competitive way and was guilty of abusing its dominance of the digital TV market (see OFT Proposes Ruling Against BSkyB).

The OFT is proposing to rule against BSkyB for infringing on the UK anti-competition law over the terms on which it supplies its channels to rival distributors. Satellite operators, ITV Digital and Telewest, are considering suing the company for lost revenues, claiming that BSkyB’s actions have restricted their growth.

A spokesperson for ITV Digital, said: “An OFT ruling of abuse of market dominance against BSkyB would be a very good thing for consumers and competition alike. It would be very positive for the digital TV market.”

Telewest was unavailable for comment, but is also believed to be considering legal action against BSkyB.

In response to the OFT’s proposed ruling BSkyB issued a statement saying: “BSkyB has not infringed the Competition Act and welcomes its first opportunity to put its case to the OFT.” The satellite operator also said that it plans to: “Robustly defend itself against all the allegations.”

If BSkyB is found guilty of breaching the Competition Act it would be forced to make concessions on the rates it charges rival channel providers for content including premium sports and film channels.

BSkyB: 020 7705 3000 www.sky.com Office of Fair Trading: 020 7211 8000 www.oft.gov.uk

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