Ofcom to scrutinise Sky-ITV deal

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The Department for Trade and Industry has taken the unprecedented step of asking Ofcom to examine the public interest ramifications of BSkyB's purchase of a 17.9% stake in ITV.
Issuing a special intervention notice, the DTI has asked Ofcom to conduct an initial investigation by April 27 on whether the acquisition "raises public interest concerns about the number of different owners of media enterprises".

"I am today asking Ofcom to conduct an initial investigation into the public interest issues that may be raised by this transaction and to report back to me," said the trade secretary, Alistair Darling.

"I wish to emphasise that this decision only means there will be an initial investigation by Ofcom and is without prejudice to any decisions I take subsequently on whether a fuller investigation by the competition commission may be necessary."

The DTI said it would also hear on April 27 from the Office of Fair Trading about the competition issues raised by the transaction.

Last month, the OFT reported its provisional view that Sky might have acquired a "material influence" over ITV when it bought its stake back in November.

Ofcom is already investigating whether a change in shareholding at ITV amounts to a change of control and whether that would have an effect on the broadcaster's licensed services such as news and current affairs.

Sky spent nearly £1bn on November 17 buying its stake in ITV, which was then without a chief executive and being courted by cable group NTL.

NTL, now Virgin Media, cried foul over Sky's tactics and has accused it of anti-competitive behaviour.

This is the first time a special intervention notice has been issued by the DTI since the passing of the Enterprise Act five years ago.

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