DTI Seeks Ofcom Investigation of Sky/ITV Deal

LONDON, February 26: The U.K.’s Department of Trade and
Industry (DTI) has called on media regulator Ofcom to launch an investigation
into BSkyB’s acquisition of a 17.9-percent stake in ITV.

By April 27, Ofcom must provide Alistair Darling, the
U.K.’s Secretary of State for Trade and Industry, with a report on whether or
not Sky’s deal to buy a stake in ITV raises public interest concerns.

Darling said in a statement: "I wish to emphasize
that this decision only means there will be an initial investigation by Ofcom
and is without prejudice to any decisions I take subsequently on whether a
fuller investigation by the Competition Commission may be necessary.”

The Office of Fair Trading (OFT) is also due to provide
Darling with a report on the implications of the Sky/ITV deal. Leading the
charge against the acquisition has been Virgin Media, formerly NTL, which was
seeking to acquire ITV when Sky announced its acquisition of a stake in the
British broadcaster for £940 million.