British Sky Broadcasting Group plc v Competition Commission
BSkyB's acquisition of a 17.9 percent stake in ITV gave it material influence and was found to lessen competition substantially, but the court clarified the separate public interest test of plurality of media.
Facts
BSkyB, the satellite broadcaster, acquired a 17.9 percent shareholding in ITV, its main competitor among commercial broadcasters, at a time when Virgin Media was considering a merger with ITV. The Competition Commission found that the shareholding gave BSkyB material influence over ITV, and that it would result in a substantial lessening of competition in the market for all television, and the Secretary of State ordered BSkyB to reduce its holding to below 7.5 percent. The Commission also found that the acquisition did not threaten plurality of persons controlling media enterprises. BSkyB and Virgin Media appealed.
Legal principle
The Court of Appeal upheld the findings that BSkyB had material influence over ITV and that the acquisition would substantially lessen competition, so the order requiring BSkyB to reduce its stake stood. On the separate public interest consideration of media plurality, the court held that the Commission had misinterpreted the test, which was concerned not only with the number of persons in control of media enterprises but also with the range of information and views available to the public, although this did not affect the result. The case shows the operation of the material influence test for minority shareholdings.
Related cases on merger control
- Airtours plc v Commission Case T-342/99, [2002] ECR II-2585
- Bertelsmann AG and Sony Corp of America v Independent Music Publishers and Labels Association (Impala) Case C-413/06 P, [2008] ECR I-4951
- CK Telecoms UK Investments Ltd v Commission Case T-399/16, EU:T:2020:217
- Commission v Tetra Laval BV Case C-12/03 P, [2005] ECR I-987
- Gencor Ltd v Commission Case T-102/96, [1999] ECR II-753
- IBA Health Ltd v Office of Fair Trading [2004] EWCA Civ 142
- Illumina Inc v Commission Joined Cases C-611/22 P and C-625/22 P, EU:C:2024:677
- Meta Platforms Inc v Competition and Markets Authority [2022] CAT 26
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