BSkyB Wins Appeal Over Sports Channels Prices

LONDON: BSkyB has won an appeal against Ofcom’s previous regulatory ruling that forced it to reduce the price for its main sports channels to competitors.

The Competition Appeal Tribunal (CAT) ruled that the regulator’s concerns over the way Sky’s sports channels were being sold were "unfounded." The spat started in March 2010, when Ofcom ordered BSkyB to sell Sports 1 and 2 to competitors for less than 23 percent of the wholesale price.

"We welcome the CAT’s confirmation that Ofcom’s competition concerns in relation to the wholesale supply of Sky Sports are unfounded and that, contrary to Ofcom’s analysis, the evidence shows that Sky has engaged constructively with other distributors over the supply of its premium channels," Sky said in a statement. "This finding supports the argument that Sky has been making consistently over the last five years.

"We also welcome the CAT’s conclusion that the existing commercial terms of supply, particularly in relation to Sky’s wholesale rate card, do not obstruct fair and effective competition in the retailing of Sky Sports across platforms.

"At present, Sky has access only to the CAT’s summary of its principal findings and conclusions. Sky will give careful consideration to the full judgment when it is made available."