Devilfish
27th February, 2008, 02:37 AM
Virgin Media today appealed the Competition Commission's ruling on Sky's stake in ITV - saying the regulator and the business secretary made "significant errors".
The commission, backed by minister John Hutton, decided Sky's holding was anti-competitive and told it to reduce it from 17.9% to below 7.5%.
Its purchase of the shares in 2006 was widely accepted to be aimed at blocking competitor Virgin from taking over the company. Sky last week appealed the ruling and today the cable broadcaster fired back by saying the commission had been too lenient.
Virgin said it supported the regulator's judgement that ITV's independence had been compromised. However, it also believes Sky's purchase "materially affected" plurality in UK media and says a reduction to below 7.5% is not enough to resolve the problem.
The cable provider said it was fighting for the correct application of competition law and a "more dynamic and competitive media landscape".
"Virgin Media has consistently argued that BSkyB's actions were intended for the sole purpose of preventing the emergence of a stronger competitor and are against the public interest," it said in a statement.
"The result is both a substantial lessening of competition and, in Virgin Media's view, an insufficient plurality in the UK's media, notably in relation to the provision of news.
"BSkyB, together with its leading shareholder News International, and ITV are both very significant providers of news in the UK. BSkyB's stake in ITV is exactly the kind of scenario that the media plurality provisions of the Enterprise Act 2003 were designed to address."
Virgin continued: "This is the first time that these rules have been tested and Virgin Media believes the Competition Commission has made significant errors in interpreting and applying these rules. If not corrected, this error will undermine the future efficacy and objectives of the public interest regime set out in the act."
Virgin has previously said Sky should have to give up all of its shares in ITV.
The commission, backed by minister John Hutton, decided Sky's holding was anti-competitive and told it to reduce it from 17.9% to below 7.5%.
Its purchase of the shares in 2006 was widely accepted to be aimed at blocking competitor Virgin from taking over the company. Sky last week appealed the ruling and today the cable broadcaster fired back by saying the commission had been too lenient.
Virgin said it supported the regulator's judgement that ITV's independence had been compromised. However, it also believes Sky's purchase "materially affected" plurality in UK media and says a reduction to below 7.5% is not enough to resolve the problem.
The cable provider said it was fighting for the correct application of competition law and a "more dynamic and competitive media landscape".
"Virgin Media has consistently argued that BSkyB's actions were intended for the sole purpose of preventing the emergence of a stronger competitor and are against the public interest," it said in a statement.
"The result is both a substantial lessening of competition and, in Virgin Media's view, an insufficient plurality in the UK's media, notably in relation to the provision of news.
"BSkyB, together with its leading shareholder News International, and ITV are both very significant providers of news in the UK. BSkyB's stake in ITV is exactly the kind of scenario that the media plurality provisions of the Enterprise Act 2003 were designed to address."
Virgin continued: "This is the first time that these rules have been tested and Virgin Media believes the Competition Commission has made significant errors in interpreting and applying these rules. If not corrected, this error will undermine the future efficacy and objectives of the public interest regime set out in the act."
Virgin has previously said Sky should have to give up all of its shares in ITV.