Ofcom has dropped an investigation into whether Sky may have breached broadband switching regulations.
Last year, the regulator said there were "reasonable grounds" to believe Sky contravened GC9.3 of the General Conditions between May 1st 2015 and July 31st 2015 in respect of landline and broadband services.
The rules are designed to make sure the process of cancelling or switching providers does not deter end users from changing to another firm.
However, Ofcom has now opted not to take any further enforcement action, as it is satisfied with the changes Sky has made to its processes and procedures over the last two years.
In a statement, the watchdog said the changes have facilitated an "improved customer experience when customers wish to cancel their service, and which Sky has informed us are part of a programme of continuous improvement".
Ofcom highlighted a number of positive changes that Sky has made, including creating a separate, dedicated and specially trained team to deal with cancellation requests made by customers via email or letter, along with encouraging advisors to recognise if a customer intends to cancel and allow those who wish to leave to do so without having a conversation about staying with Sky.
The watchdog added that its decision was also influenced by Sky's improvements to the clarity of information available to customers on its website about the different cancellation routes available and the applicable notice periods.
Speaking to ISPreview.co.uk, a Sky spokesperson said it is pleased Ofcom has chosen to close the case.
"At Sky, we are proud of our industry leading reputation for customer service as recognised by Ofcom," the representative stated.
"Getting things right for our customers will continue to be our number one priority.”