Virgin Media is taking legal action against BSkyB over the removal of Sky's basic channels from the cable TV platform.

Virgin Media had given a thirty-day period to Sky to reach an agreement to which Virgin received no response.

In today's developments it is also learnt that Virgin will bring up an issue over how much Sky charges for carriage of Virgin owned channels (Including Living and Bravo) on Sky Digital. Virgin has described these as "onerous" rates.

Virgin Media chief executive, Steve Burch said, "This dispute is one very specific example of how UK consumers are being denied the benefits of a diverse, dynamic and competitive pay-TV market."

Virgin is basing its legal challenge on the Competition Act and article 82 of the EC Treaty, arguing that Sky is abusing its dominant position in the UK pay-TV market.

Sky claims such a challenge is unfounded, because it has already been cleared, in 2002, by the Office of Fair Trading of abusing its dominant position.

Last week, it was reported here that Sky's basic channels have lost a combined 24.5% in their multichannel audience share since they came off Virgin Media.

Related links:
Virgin Media set for legal action with BSkyB
Virgin Media loses Sky's basic channels
Time running out for BSkyB/Virgin deal
Sky to pull major channels from Virgin Media
Sky warn Virgin Media viewers
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