Virgin Media to Appeal Competition Commission's Conclusions on BSkyB and ITV

25.02.2008 -- Virgin Media will today file an appeal with the Competition Appeal Tribunal requesting a review of the recent conclusions of the Competition Commission and the Secretary of State for Business Enterprise & Regulatory Reform relating to BSkyB's acquisition of a 17.9 per cent stake in ITV.

Together with its work in relation to Ofcom's ongoing investigation into the pay TV market, the appeal is an important part of Virgin Media's commitment to fight for a more dynamic and competitive media landscape in the U.K.

Virgin Media has consistently argued that BSkyB's actions were intended for the sole purpose of preventing the emergence of a stronger competitor and are against the public interest. The Competition Commission has determined that BSkyB's shareholding confers the ability to exert material influence over ITV's decision-making and that this has significantly compromised ITV's independence. The result is both a substantial lessening of competition and, in Virgin Media's view, an insufficient plurality in the U.K.'s media, notably in relation to the provision of news.

While Virgin Media strongly supports the Competition Commission's conclusions that the acquisition has led to a substantial lessening of competition, it is appealing the Competition Commission's recommendation that a reduction of BSkyB's stake in ITV to 7.5 per cent is adequate to address this problem.

Virgin Media is also appealing the Competition Commission's conclusions that the acquisition has not materially affected the sufficiency of plurality in the U.K.'s media. BSkyB, together with its leading shareholder News International, and ITV are both very significant providers of news in the U.K. BSkyB's stake in ITV is exactly the kind of scenario that the media plurality provisions of the Enterprise Act 2003 were designed to address. This is the first time that these rules have been tested and Virgin Media believes the Competition Commission has made significant errors in interpreting and applying these rules. If not corrected, this error will undermine the future efficacy and objectives of the public interest regime set out in the Act.

Source: Virgin Media

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