Competition Commission Recommends Sky Sell Down ITV Stake
The Competition Commission has recommended that Sky be forced to sell down its 17.9% stake in ITV to under 7.5%.
The Department for Business, Enterprise and Regulatory Reform today published the 163 page Competition Commission report, which found that the acquisition could be “expected to operate against the public interest”.
The Competition Commission said that there are two possible remedies, the first being a full divestiture of the 17.9% stake, the second being a reduction to below 7.5%, which the Commission said is more proportionate as it is the least intrusive option.
The report added that BSkyB should also be told that it could “neither seek nor accept board representation”.
Business secretary John Hutton is required to accept the Competition Commission’s findings but has discretion in making decisions on the effects on media plurality and also on remedial measures.
Hutton has until the end of January to announce a final decision on the report.
Sky and ITV have both issued statements acknowledging the report, but have not made any further comment.
Sky’s stake in ITV was referred to the Competition Commission in May by the Department of Trade and Industry following recommendations from Ofcom and the Office of Fair Trading (see Sky’s Stake In ITV Referred To Competition Commission).
Sky: 08702 40 40 40 www.sky.com ITV: 020 7843 8000 www.itv.com