By: Luke
Darling asks Ofcom to investigate BSkyB-ITV deal under Enterprise Act
In accordance with Section 44A of the Enterprise Act, Secretary of State for Trade and Industry, Alistair Darling, has today asked Ofcom to conduct an initial investigation into British Sky Broadcasting Group’s acquisition of a 17.9% stake in ITV plc.
This is the first time a special intervention notice has been issued by the DTI since the passing of the Enterprise Act five years ago.
This means Ofcom must provide advice to him by 27 April on whether the case raises public interest concerns about the number of different owners of media enterprises.
Alistair Darling said “I am today asking Ofcom to conduct an initial investigation into the public interest issues that may be raised by this transaction and to report back to me”.
He went on to say “I wish to emphasise that this decision only means there will be an initial investigation by Ofcom and is without prejudice to any decisions I take subsequently on whether a fuller investigation by the Competition Commission may be necessary”.
The Office of Fair Trading (OFT) announced on 12 January 2007 its provisional view that a relevant merger situation may have been created for the purposes of the Enterprise Act 2002 as a result of British Sky Broadcasting Group acquiring material influence over ITV plc. The OFT will also report to the Secretary of State on 27 April on this and other competition issues raised by the transaction.
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