Feb 26, 2008 • 1 min read

Virgin appeal Competition Commission's Sky ITV stake ruling

Virgin Media is appealing the Competition Commission's ruling on Sky's ITV stake, arguing the cut to 7.5% is inadequate and that Sky should sell its whole stake.

Now Virgin Media are now also mounting a legal challenge to the competition regulator's ruling regarding Sky's stake in ITV.

As previously reported, Sky is appealing the ruling - which ordered Sky to reduce its stake in its rival from 17.9% to 7.5% - arguing the ruling was both unjustified and overly severe. Virgin are mounting a legal challenge because they say it's not severe enough - they want Sky to be forced to sell their whole stake.

As also previously reported, Virgin have been the most vocal critics about Sky's ITV share purchase - maybe because Sky bought into the broadcaster at the same time Virgin - then NTL - was talking about merging with it. An NTL/ITV merger probably wouldn't have happened anyway, but Sky's share in ITV definitely put an end to any merger ambitions, and cynics would say that was why they bought the shares in the first place (a combined Virgin Meda/ITV would be quite a big competitor for Sky).

Virgin's appeal against the Competition Commission says the regulator made "significant errors" in how it interpreted the Enterprise Act 2003 in reaching its conclusions.

A statement from Virgin Media reads: "While Virgin Media strongly supports the Competition Commission's conclusions that the acquisition has led to a substantial lessening of competition, it is appealing the Competition Commission's recommendation that a reduction of BSkyB's stake in ITV to 7.5% is adequate to address this problem. This is the first time these rules [the media plurality provisions of the Enterprise Act 2003] have been tested and Virgin Media believes the Competition Commission has made significant errors in interpreting and applying these rules".

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