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OFT Becomes Involved In Digital War
The Office of Fair Trading (OFT) is carrying out a preliminary enquiry on ITV’s insistence that it is not going to allow its channels to be carried by BSkyB’s digital service (see Newsline) which launches in October.
The move is the latest development in a debate which has also involved the Independent Television Commission (ITC), which eventually stood in support of ITV’s decision, stating there was no real reason why it should compel ITV to be carried by BSkyB.
Granada and Carlton, the two biggest ITV companies, co-own British Digital Broadcasting (BDB), BSkyB’s largest competitor in the digital TV stakes, and may therefore be reluctant to merge with such a direct rival to its interests.
The OFT’s enquiry is in response to a complaint from BskyB that such a position is uncompetitive, and the OFT commented: “It is our duty to ensure that the market place is competitive, and therefore we need to look at competitive legislation in the light of ITV’s stand.”
A spokesperson for ITV told Newsline today that: “It is ridiculous to construe our decision not to join BSkyB, which after its digital launch will carry near on all other available services, as uncompetitive. We wish to maintain some sort of control over our means of broadcast.”
Office of Fair Trading: 0171 211 8000 ITV: 0171 843 8000 BSkyB: 0171 705 3000
