Feb 27, 2007 • 1 min read

Government asks Ofcom to investigate BSkyB's ITV share purchase

Trade and Industry Secretary Alistair Darling has asked Ofcom to investigate BSkyB's 17.9% stake in ITV on public interest grounds, though the purchase broke no current ownership rules.

The government has asked OfCom to investigate that much previously reported purchase of 17.9% of ITV by BSkyB - a purchase which pissed of Virgin/NTL who at the time were proposing a merger with the commercial broadcaster. Sky's ITV share purchase didn't contravene current rules regarding its ownership of other media, but ministers are said to be concerned the share deal was "against the public interest".

Commenting on his decision to ask for an OfCom investigation, Trade And Industry Secretary Alistair Darling said yesterday: "As a general rule, ministers have withdrawn from the regulatory consideration of mergers. However... in this case, it is appropriate for me to use the mechanism established by the Communications Act 2003 to ask Ofcom to conduct an initial investigation into the public interest issues that may be raised by this transaction".

As Sky hasn't broken any OfCom rules in buying a stake of ITV, the media regulator would have to refer the share deal to the Competition Commission if it felt the transaction ran contrary to public interest. Sky responded to the news of the investigation by simply saying it would "continue to engage fully with the DTI, the OFT and OfCom during the ongoing process".

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