EC Clears News Corp’s BSkyB Bid

LONDON: The European Commission has cleared News Corporation’s proposed acquisition of BSkyB, deciding that the transaction would not “impede effective competition in the European Economic Area.”

The EC was investigating concerns that the merged entity could either refuse advertising by BSkyB’s competitors in News Corp.’s newspapers or charge a competitive premium, which would impede their ability to attract subscribers or viewers. The Commission’s findings only concern the competition aspects of the proposed transaction.

Ofcom is still investigating whether the takeover would damage media plurality in Britain, and is due to publish its own ruling tomorrow.

The European Commission’s VP and commissioner for competition, Joaquin Almunia, said: "I am confident that this merger will not weaken competition in the U.K. The effects on media plurality are a matter for the U.K. authorities."