UK’s BT wins pricing appeal against BSkyB

UK telecom giant BT's pay-TV battle with BSkyB in which Rupert Murdoch's 21st Century Fox holds a 39per cent stake, is set continue following a court ruling Monday, 17 February.

BT won a ruling in the Court of Appeal that could see BSkyB forced to cut the wholesale price at which it offered Sky Sports to rivals by 23 per cent.

In a statement, Sky noted the ruling and pledged to continue the fight.

According to Sky, the court ruling did not in any way alter the Competition Appeal Tribunal's fundamental findings, which overturned a ruling by UK media watchdog Ofcom that the satellite operator "engaged constructively with other distributors over the supply of its premium sports channels."

CAT also found that Virgin Media was able to effectively compete with Sky on the basis of Sky's rate card prices.

The satellite pay-TV giant said in a statement, "Sky continues to believe that Ofcom's 2010 decision is flawed and that the WMO obligation ought properly to be removed, and will continue to pursue all available options to achieve this aim."

The Court of Appeal decision would require the competition tribunal to re-examine its decision from August 2012, which stopped BSkyB being forced to offer Sky Sports 1 and 2 to rivals at discounted prices.

''BT welcomes today's judgment from the Court of Appeal. We are glad that this issue will now be considered afresh and are hopeful that the outcome will finally deliver increased competition in pay-TV which would be in the best interests of consumers,'' said a BT spokesperson, adding, ''BT remains unable to offer Sky Sports 1 and 2 on its most important TV service YouView. Sky's refusal to offer access to these channels on reasonable terms causes serious harm to consumers and must be resolved urgently.''

In its original ruling in 2012, The Competition Appeal Tribunal (CAT) said, an Ofcom ruling of March 2010 that Sky charge a wholesale regulated price for Sky Sports and offer a guarantee of access to rivals was ''unfounded''.

The decision was challenged by BT in the Court of Appeal, and yesterday's ruling would force the CAT to reopen the issue in the coming weeks.

''Sky continues to believe that Ofcom's 2010 decision is flawed and that the wholesale must offer obligation ought properly to be removed, and will continue to pursue all available options to achieve this aim,'' Sky said in a statement.