Sky/ITV Deal Faces Investigation by Competition Commission

LONDON, May 24: The U.K.’s Secretary of State for Trade and
Industry, Alastair Darling, has ruled that BSkyB’s acquisition of a 17.9
percent stake in ITV warrants further investigation by the Competition
Commission.

Last month, the U.K.’s Office of Fair Trading (OFT) and
Ofcom concluded that the deal raises competition concerns for the British media
market. John Fingleton, the chief executive of OFT, said at the time:
"Sky's shareholding means that ITV is no longer fully independent, and
this may alter the future competitive landscape."

Both organizations submitted their reports to Darling, who
today said: "On the basis of the evidence before me, a fuller
investigation by the Competition Commission is justified.”