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Sky unhappy with DTI intervention

The Department of Trade and Industry has asked Ofcom to investigate if BSkyB's acquisition in ITV is in the public's interest.

BSkyB are unhappy at the intervention of the Department of Trade and Industry (DTI) over its 17.9% stake purchase in ITV.

The DTI has asked Ofcom to conduct an initial investigation by 27th April on whether Sky's acquisition "raises public-interest concerns about the number of different owners of media enterprises".

BSkyB have said that the secretary of state Alistair Darling's decision to investigate the public-interest ramifications of BSkyB's purchase contradicted government guidelines.

A statement by the satellite company read: "The Secretary of State’s action today contradicts the Government’s published guidance, which clearly sets out the circumstances in which intervention will be considered. Any positive environment for investment requires that business should be able to rely with confidence on Government guidance when making decisions."

"We welcome, however, the Secretary of State’s emphasis that this is "an initial investigation" that is made "without prejudice" to any subsequent, substantive decisions.

“Sky will continue to engage fully with the DTI, the OFT and Ofcom during the ongoing process. Our minority shareholding in ITV has no bearing on the considerations of the public interest test relating specifically to media plurality. Indeed, when Parliament debated the 2003 Communications Act, it expressly considered that plurality would be protected if Sky were to own no more than 20% of ITV."

BSkyB purchased a 17.9% stake in ITV last November which is currently being investigated by Ofcom.

Related links:
Ofcom to investigate BSkyB/ITV deal
BSkyB in shock ITV move

Editor: Lakhvinder Baddhan Source: BSKyB
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