The Office of Fair Trading (OFT) has recommended that BSkyB's purchase of a 17.9% stake in ITV should be referred to the Competition Commission.

BSkyB's decision to buy the stake in November effectively blocked plans by then rival NTL to buy ITV.

Ofcom and the OFT have now sent their views to Trade and Industry Minister Alistair Darling who will announce by 26th May whether he wants the issue sent to the Competition Commission.

The OFT said it found that a relevant merger situation had been created, that the stake may lead to less competition in the market and that clearcut remedies to resolve the OFT's competition concerns were not offered.

"We have concluded that this partial ownership link between two key players raises significant competition concerns," said OFT Chief Executive John Fingleton.

Related links:
Ofcom to investigate BSkyB/ITV deal
Sky unhappy with DTI intervention
BSkyB in shock ITV move