Sky’s Stake In ITV Referred To Competition Commission
BSkyB’s 17.9% stake in ITV has been referred to the Competition Commission by the Department of Trade and Industry.
The decision to refer the case to the Competition Commission follows recommendations from Ofcom (see NewsLine) and the Office of Fair Trading (OFT) (see Sky’s ITV Stake Raises Significant Competition Concerns)that the matter should be referred.
In an announcement made today, the DTI said that it had made the referral owing to both recommendations.
A final decision will be made on the matter by the secretary of state.
Alistair Darling, current secretary of state for trade and industry, said: “My decision reflects consideration of the reports I have received from both the Office of Fair Trading and Ofcom and of other representations I have received about this matter.”
“On the basis of the evidence before me, a fuller investigation by the Competition Commission is justified.”
Sky could eventually be forced to sell its stake, which it bought last November (see Branson Bites Back At Sky’s Swoop On ITV).
In a statement released today, BSkyB said of the decision: “Sky notes today’s announcement by the secretary of state for trade and industry. We look forward to engaging with the Competition Commission as the ongoing regulatory process enters its next phase.”
Sky: 08702 40 40 40 www.sky.com ITV: 020 7843 8000 www.itv.com