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20/12/2002

OFT find Sky not guilty of competition breaches

After a lengthy investigation into allegations of anti-competitive practises, the UK Office of Fair Trading have concluded a study into Sky's business practises.
The company has not been found in breach of competition law. A BSkyB spokesman said: "After an investigation lasting nearly three years, BSkyB welcomes confirmation that its conduct has not infringed the Competition Act."
The outcome of the investigation has come as a shock to many in the media world, which expected Sky to be fined for their practises. However, while the OFT report acknowledges Sky's dominant position, they did not find Sky in breach of competition rules.
The investigation examined allegations that Sky's charges for carriage of their heavily-in-demand Sky Movies and Sky Sport were too high, keeping smaller satellite and cable operators in a position so static as to stifle competition, because wholesale and retail costs were so close as to afford the middlemen very little profit.
(GB)
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