British Regulators Express Concern Over BSkyB/ITV Deal

LONDON, April 27: The U.K.’s Office of Fair Trading (OFT)
and Ofcom have concluded that BSkyB’s acquisition of a 17.9-percent stake in
ITV raises competition concerns for the British media market.

Both organizations have submitted their reports to Alastair
Darling, the country’s secretary of trade and industry, who has until May 26 to
decide whether or not to put the issue to the Competition Commission for
further investigation. Should that happen, it could cost BSkyB some £500,000 in
legal fees, reports indicate.

John Fingleton, the chief executive of the OFT, said in a
statement: “We have concluded that this partial ownership link between two key
players raises significant competition concerns. Sky's shareholding means that
ITV is no longer fully independent, and this may alter the future competitive
landscape, especially as we approach digital switchover. Given the high stakes
for tens of millions of U.K. consumers, we believe these risks to competition
merit further examination.”

Sky responded today, saying: "More than any other
company, Sky has led the unprecedented expansion in choice and diversity of
views available to British families. The number of channels has grown from four
when Sky was founded in 1989 to over 400 today, spanning entertainment, arts,
children's, news, sports and documentary genres. Sky believes in choice and
competition and supports an environment that fosters investment and dynamism in
today's fast-changing media landscape."