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29 April 2010
BSkyB reaches agreement at the CAT
BSkyB and Ofcom have reached agreement on the terms of an order which they have today placed before the President of the Competition Appeal Tribunal (CAT) to resolve Sky’s application for interim relief of 16 April 2010, seeking suspension of the outcome of Ofcom’s Pay TV Market investigation.
The terms of the proposed order result in the suspension of certain aspects of Ofcom’s decision pending the outcome of BSkyB’s substantive appeal.
In summary, the effect of the proposed order will be that:
- Ofcom’s wholesale must offer (WMO) obligation will initially apply only in respect of BT, Top-up TV and Virgin Media on DTT and cable.
- Each of BT, Top-up TV and Virgin Media would effectively pay the rate card price for Sky Sports 1 and/or Sky Sports 2, with the difference between that and the relevant WMO price paid into escrow.
- At the conclusion of the appeal, the CAT will determine the distribution of the monies held in escrow.
A Sky spokesman said: “We are pleased to have been able to put forward an agreement which provides substantial protection against the short-term impacts of Ofcom’s decision. We remain fully focused on our substantive appeal, which will be filed with the CAT in due course.”
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