Sky's position in movies not affecting competition: UK Competition Commission

MUMBAI: UK‘s Competition Commission has said that pay TV service provider Sky‘s strong position in the pay-TV movie market does not adversely affect competition.

The Competition Commission had initially said that Sky’s exclusive deals with film studios to air their movies when they first air on television restricted competition. However, the Competition Commission has now decided not to take action over the situation.

The Competition Commission noted that companies like Netflix and LoveFilm have increased competition and consumer choice.

Competition Commission chairman of the inquiry group Laura Carstensen said, "In our view, competition in the pay-TV retail market remains ineffective but we were asked by Ofcom to look specifically at the role of first pay-movie content and Sky‘s position with regard to these rights. We have concluded that this content does not provide Sky with such an advantage when competing for pay-TV subscribers as to harm competition and, given this finding, we are not proposing any remedies. We note that, were there to be a material change in the circumstances which have led us to our findings, this might warrant renewed scrutiny of these issues. We also note that Ofcom has sought separately to remedy Sky’s position with regard to sports content."

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