Sky Ordered to Pay Legal Costs in ITV Battle

LONDON: BSkyB has been told to cover the legal fees incurred by the U.K.’s Competition Commission and the Secretary of State for Business, Enterprise and Regulatory Reform during the battle over the British satellite platform’s investment in ITV.

In 2006, Sky shelled out £940 million for a 17.9-percent interest in ITV. The Competition Appeal Tribunal (CAT) subsequently ruled that Sky would need to reduce its stake to no more than 7.5 percent, fearing a reduction in competition in the British market. In ordering Sky to cover the Competition Commission’s and Secretary of State for Business’s legal fees, CAT also rejected an appeal from Virgin Media for Sky to cover its costs. The cable operator had been attempting a takeover of ITV before Sky announced its investment in the commercial broadcaster. The amount that Sky will have to pay has not been determined. The platform still has an appeal pending to retain the 17.9-percent interest.