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BSkyB hits back at competition criticism

# 12 December 2011, 14:40 by Chris T

BSkyB has come out fighting in its response to a Competition Commission report that claims the business makes “excess profits” due to its “control” of the British pay-TV market.

Issuing a written rebuff to the report, published in August, BSkyB said the claims were “manifestly flawed” and were “insufficiently supported by relevant evidence”.

It also claimed that the launch of rival services such as Netflix and Amazon’s LoveFilm meant there was no longer any reason for the Competition Commission to be involved.

The Commission has suggested that BSkyB might be prevented from doing deals with all six major Hollywood studios at the same time, or face new rules that would prevent broadcast and digital distribution rights from being bundled in the same deal between broadcaster and studio.

BSkyB, meanwhile, has also complained that the Commission has been “unfair to Sky” by restricting its investigation to broadcasters and not including online distributors like Amazon, which it claims is easily rich enough to bid for rights if it wants to.

However one of those rival broadcasters, Virgin Media, is already known to have welcomed the Competition Commission’s findings.

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