Investigation into a complaint by BT against Sky in relation to the contract for wholesale supply of Sky Sports 1 and 2
Complainant: BT plc (BT)
Complaint against: British Sky Broadcasting plc (Sky)
Case opened: 13 December 2010
Case closed: 29 March 2011
Issue: BT has asked Ofcom to investigate a complaint against Sky concerning the requirement on BT to provide Sky with information on BT Visions total number of Pay Subscribers and total number of customers. This requirement arises under BSkyB's wholesale supply agreement with BT for premium sports channels (Sky Sports 1 and Sky Sports 2).
Relevant Instruments: Conditions 14A and 17 of the Television Licensable Content Service (TLCS) licences for Sky Sports 1 and 2, Sections 316 and 317 of the Communications Act 2003, section 4 of the Broadcasting Act 1990, Ofcoms Pay TV Statement dated 31 March 2010 and the Competition Appeal Tribunals Order dated 29 April 2010 1152IR BSkyB.
Update Note: 12 April 2011
A non-confidential version of Ofcoms decision dated 29 March 2011 can be found at the link below.
End of update note
Update Note: 30 March 2011
On 29 March 2011 Ofcom concluded its assessment of BTs complaint, issuing a decision to give a direction to Sky in respect of compliance with Condition 14A of each of the Television Licensable Content Service licenses for Sky Sports 1 and Sky Sports 2. The direction states that a clause in Sky's agreement for the wholesale supply of Sky Sports 1 and Sky Sports 2 to BT, requiring BT to provide Sky with BT Visions total number of Pay Subscribers and total number of customers is in breach of Condition 14A(1)(d) and requires that clause to be removed forthwith. We intend to publish a non-confidential version of the decision in due course. The decision constitutes the exercise of a Broadcasting Act power for a competition purpose pursuant to s317(4) of the Communications Act 2003 and therefore gives rise to the rights of appeal contained in s317(6).
Scope of the investigation
The scope of the investigation is to determine whether, by requiring BT to provide Sky with BT Visions total number of Pay Subscribers and total number of customers, Sky has breached Condition 14A(d) of its Television Licensable Content Service licences, namely its obligation to make an offer on fair and reasonable terms.
Case Leader: Will Hayter (e-mail: Will.Hayter@ofcom.org.uk)
Case Reference: CW/01061/11/10