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Ofcom has opened a dispute over Sky’s EPG costs and could potentially be fined up to £410m.
Some broadcasters are unhappy at the cost of Sky's EPG service. Youth entertainment channel Rapture is one of the broadcaster's who has lodged an official complaint about the high costs.
Rapture believes that BSkyB is charging excessively high fees for the supply of an EPG service on the UK's only digital satellite platform. Rapture has submitted evidence that BSkyB previously charged much lower fees for the same service and Ofcom has accepted the application.
In a process that could take up to 4 months, Ofcom will review the evidence presented by Rapture showing the fee of £76,800 for one years EPG is not cost related, and no negotiation on this price was allowed by Sky. If Sky is found not to have dealt with Rapture in a 'fair, reasonable and non-discriminatory' way, Ofcom could potentially fine them up to 10% of their annual turnover, published as £4.1bn in June 2006.
David Henry, Managing Director of Rapture said "Ofcom opening our dispute is a huge development for Rapture. I am confident that with the evidence we have presented, Ofcom will have no other option but to find in our favor, and I look forward to a system in the future where a dominant competitor cannot abuse its position in an anti-competitive way."
Related link:
Rapture to remain on EPG as BSkyB threatens
Rapture submits EPG costs complain to Ofcom
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