BT has asked media regulator Ofcom to investigate rival Sky for “an abuse of dominance” after the two companies failed to agree a carriage deal for Sky Sports 1 & 2 on BT’s YouView platform.
Under the terms of an existing deal BT is able to offer the channels to users of its legacy BT Vision service, however it has been unable to get Sky’s agreement to offer them to users of its new YouView boxes.
In a statement Ofcom confirmed it has received a complaint from BT “which alleges that the terms on which Sky offered wholesale supply of SS1&2 to BT’s YouView platform amount to an abuse of dominance.”
In its complaint BT alleges Sky is making wholesale supply of SS1&2 to BT’s YouView platform conditional on BT wholesaling BT Sport channels to Sky for retail on Sky’s satellite platform.
BT has so far not agreed wholesale deals with any providers, and is instead selling its channels direct to Sky customers and providing them free of charge to existing BT broadband users.
Ofcom’s statement says: “As set out in section 25 of the Act, Ofcom may conduct an investigation where it considers there are reasonable grounds for suspecting that the Chapter II prohibition and/or the prohibition in Article 102 TFEU have been infringed. In addition to the Chapter II prohibition in the Act, Ofcom has the power to apply Article 102 TFEU in full.
{Ofcom has now opened an investigation under section 25 of the Act into the matters raised by BT’s complaint and will consider whether Sky has abused a dominant position under UK and/or EU competition law.
“As part of the complaint BT has requested that Ofcom should consider whether it is necessary to act as a matter of urgency to grant interim measures relief under section 35 of the Act. We expect to issue a decision on interim measures in July 2013.”
Commenting on the complaint, Sky’s director of corporate affairs, Graham McWilliam said the company had “tried hard to uphold a simple principle of mutual supply so that both of us would offer all our customers all Premier League matches from next season.
“However, BT has remained intent on a one-way deal which is loaded in its favour. This is not something that we – or anyone else – could reasonably have been expected to agree to.”