Sky launches official legal action against Ofcom ruling

April 23 – British Sky Broadcasting Group today officially launched its legal appeal to delay Ofcom’s recent ruling that the nation’s biggest television company must wholesale its premium sport content to rivals and provide a new pricing structure by May 14.

The appeal is being heard by Competition Appeal Tribunal (CAT) President Justice Gerald Barling in Holborn, London, and is expected to go on for some time.

Sky is seeking the delay, legally known as an “interim relief”, so it can pursue a full appeal, arguing that Britain’s communications regulator Ofcom has overstepped its powers and its findings are flawed.

Following a three-year review of the pay-TV industry, the media regulator has ordered Sky to reduce the wholesale price of Sky Sports 1 and 2 by 23.4 per cent for rival operators.

Ofcom believes that the resulting increased competition would bring fresh investment in services and a wider range of innovations for consumers.

Richard Scudamore, the chief executive of the Premier League, has claimed that the ruling could damage English club’s ability to sign the world’s top players and that would affect the quality of their product.

James Flynn QC, who is representing Sky at CAT, said the full appeal could take up to nine months.

If CAT rejects Sky’s request, rivals including Virgin Media PLC and BT would be able to offer customers Sky Sports channels before the start of the new football season in August.

Ofcom ruled in Marchthat Sky must offer Sky Sports 1 and 2 channels to cable, terrestrial and Internet Protocol television groups at a wholesale price.

The decision is expected to trigger a consumer price war, and shrink the value of sports broadcasting rights in the UK.