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BT wins right to take Sky Sports price ruling to court of appeal BT wins right to take Sky Sports price ruling to court of appeal
(5 months later)
BT has won the right to take a ruling by the competition regulator that stopped BSkyB being forced to offer Sky Sports 1 and 2 to rival TV services at a discount of up to 23% to the court of appeal.BT has won the right to take a ruling by the competition regulator that stopped BSkyB being forced to offer Sky Sports 1 and 2 to rival TV services at a discount of up to 23% to the court of appeal.
Last summer, the Competition Appeal Tribunal handed down a scathing judgment concluding that the basis of media regulator Ofcom's decision to force BSkyB to cut the amount it charges rivals to air Sky Sports channels was "unfounded".Last summer, the Competition Appeal Tribunal handed down a scathing judgment concluding that the basis of media regulator Ofcom's decision to force BSkyB to cut the amount it charges rivals to air Sky Sports channels was "unfounded".
BT challenged this decision at the court of appeal and on Friday was given the right to lodge an appeal. The court granted BT the right on the grounds that the CAT failed to investigate the issue of the level of discounts that BSkyB claimed it gave rivals on the ratecard price to air its sports channels.BT challenged this decision at the court of appeal and on Friday was given the right to lodge an appeal. The court granted BT the right on the grounds that the CAT failed to investigate the issue of the level of discounts that BSkyB claimed it gave rivals on the ratecard price to air its sports channels.
The hearing is expected to be held in the next few weeks.The hearing is expected to be held in the next few weeks.
Ofcom proposed to introduce the new pricing structure, which would have made Sky Sports 1 and 2 up to 23% cheaper than the previous wholesale price in March 2010, after determining that BSkyB was abusing its power in the market.Ofcom proposed to introduce the new pricing structure, which would have made Sky Sports 1 and 2 up to 23% cheaper than the previous wholesale price in March 2010, after determining that BSkyB was abusing its power in the market.
Rivals including BT, Virgin Media, Top Up TV, the now-defunct Setanta, and new satellite players such as Real Digital all complained about Sky's tactics.Rivals including BT, Virgin Media, Top Up TV, the now-defunct Setanta, and new satellite players such as Real Digital all complained about Sky's tactics.
Ofcom said that it was "very surprised and disappointed" when the CAT ruled against it last summer, but chose not take the issue to the court of appeal as BT has done.Ofcom said that it was "very surprised and disappointed" when the CAT ruled against it last summer, but chose not take the issue to the court of appeal as BT has done.
"We are pleased that the court of appeal has granted BT permission to appeal the CAT's pay-TV judgment and we look forward to explaining in the forthcoming trial why BT believes that the CAT's judgment on this matter was incorrect," said a spokeswoman for BT."We are pleased that the court of appeal has granted BT permission to appeal the CAT's pay-TV judgment and we look forward to explaining in the forthcoming trial why BT believes that the CAT's judgment on this matter was incorrect," said a spokeswoman for BT.
"We look forward to making Sky Sports channels available to our platform when we launch this autumn," said David Henry, co-founder of Real Digital, which intends to launch a rival satellite pay-TV service by the end of the year."We look forward to making Sky Sports channels available to our platform when we launch this autumn," said David Henry, co-founder of Real Digital, which intends to launch a rival satellite pay-TV service by the end of the year.
A BSkyB spokesman said: "We note today's decision of the court of appeal to grant BT permission to appeal the CAT's judgment on the wholesale supply of Sky Sports 1 and 2. The court of appeal will hear the arguments of Sky and BT in due course."A BSkyB spokesman said: "We note today's decision of the court of appeal to grant BT permission to appeal the CAT's judgment on the wholesale supply of Sky Sports 1 and 2. The court of appeal will hear the arguments of Sky and BT in due course."
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