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OFT statement on British Sky Broadcasting Group plc shareholding in ITV plc

8 December 2006

The OFT can confirm that it has received a complaint concerning the acquisition by British Sky Broadcasting Group plc (BSkyB) of a 17.9 per cent shareholding in ITV plc (ITV). Consistent with normal procedure, the OFT is writing to BSkyB to seek further information regarding the transaction and is also contacting ITV to seek its view. While the OFT has not, as yet, started any formal investigation, we anticipate that we will be issuing a formal public invitation to comment in due course.

Any assessment by the OFT will have regard to two main questions:

(i) whether the OFT has jurisdiction under the Enterprise Act 2002 to review the acquisition as a relevant merger situation. This will include consideration of whether BSkyB may be regarded as having the ability to exercise material influence over the commercial policy of ITV within the meaning of the Enterprise Act.

(ii) If the OFT believes that it has jurisdiction, whether the merger raises any potential competition issues that give rise to a duty to refer the merger to the Competition Commission under the 'substantial lessening of competition' test set out in the Enterprise Act.

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