2 October 2007
A recent deal between BSkyB and ITV has been criticised by industry regulators for limiting competition in the industry.
The Competition Commission (CC) has provisionally ruled that the purchase of a 17.9% stake in ITV by the satellite TV provider for £940 million last year could have the effect of unfairly influencing content and new technology.
The news follows BSkyB's blocking of an attempted takeover bid for ITV by Virgin Media in November last year. The case was moved to the CC after Virgin Media asked Ofcom and the Office of Fair Trading to get involved following concerns that the takeover could limit competition.
The watchdog noted that BSkyB's purchase "operates against the public interest".
"The acquisition has made BSkyB ITV's largest shareholder by some margin. Whilst our provisional view is that this would not necessarily affect day-to-day operations, BSkyB would be able to influence ITV's key strategic decisions, particularly relating to investment, whether in content, capacity or new technology," it added.
A BSkyB spokesman said they noted the findings and possible remedies and that the firm would "continue to engage with the Commission during the remainder of this process".
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