Commission looks at BSkyB's ITV share deal

The Competition Commission is to judge if BSkyB's acquisition of ITV shares is not in the public interest.

The decision to refer the matter to the CC comes after Ofcom and the Office of Fair Trading (OFT) individual produced reports for Alistair Darling, the Secretary of State for Trade and Industry.

Both Ofcom and the OFT separately stated the belief that there are public interest issues surrounding Sky's acquisition of a 17.9 per cent share in ITV plc.

Sky bought the stake in November 2006 in a move that was seen by some as a means of blocking any potential merger between ITV and cable giant NTL/Telewest (now known as Virgin Media ).

After considering these reports, Mr Darling has now passed the matter on to the Competition Commission for a full investigation.

The commission has been asked to decide whether a relevant merger situation has been created and whether the creation of that situation is likely to lead to a substantial lessening of competition in any market or markets within the UK.

In addition it must also decide whether, taking account of the specified public interest consideration (the need for 'plurality of persons with control of media enterprises'), the merger will operate against the public interest.

The commission must report to the Secretary of State by 7 November 2007 who must then decide on the basis of the report what action should be taken. It will appoint members to its inquiry group and will then publish a draft timetable for the inquiry.

The first task for the group will be to gather evidence by contacting all involved parties and by advertising for submissions from any other interested groups or individuals.

The Secretary of State's reference follows submissions from both the Office of Fair Trading (OFT) and Ofcom, which raised concerns about the acquisition on competition and public interest grounds respectively.

The Competition Commission would like to hear from all interested parties, in writing, by 14 June 2007. To submit evidence, email or write to: Inquiry Secretary (BSkyB/ITV inquiry) Competition Commission Victoria House Southampton Row LONDON WC1B 4AD Email: BSkyB-ITV@cc.gsi.gov.uk