Court orders BSkyB to cut stake in ITV

Court orders BSkyB to cut stake in ITV
Court orders BSkyB to cut stake in ITV
 

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BSkyB has been told by the court of appeal it must reduce its 17.9 per cent stake in ITV to below 7.5 per cent.

The satellite broadcaster, part of Sky, lost its appeal today after challenging a ruling by the Competition Commission (CC) that its stake was not in the public interest.

The court of appeal dismissed the challenge and the CC's original conclusion on plurality was upheld.

Lord Justice Lloyd said in his ruling that he would not give permission for Sky to take the case to the supreme court, but it is thought the broadcaster may do this directly.

Sky bought the stake in ITV in 2006 for £940 million, but the move was opposed by the CC in 2007, who said the stake was against the public interest.

In June last year communications regulator Ofcom called on BSkyB to make its premium channels available to other wholesalers. But Sky said the regulator was practicing "unwarranted intervention" in the industry, and would be challenging Ofcom's plans.

Back in 2008, BSkyB was also told by the government that it must decrease its shareholder stake in ITV, backed by then business secretary John Hutton.


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