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21|11|06

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

Ofcom has invited ITV plc (ITV) and British Sky Broadcasting Group plc (BSkyB) to comment on whether BSkyB's acquisition of shares in ITV represents a change of control of one or more of the licences held by ITV plc.

If Ofcom were to conclude that a change of control had taken place, Ofcom would then need to review the effects - or likely effects - of such a change of control on ITV's licensed services; for example, original productions, news and current affairs programmes and regional programming.

As the sectoral regulator responsible for broadcasting, Ofcom carries out change of control reviews as one of its duties under the Communications Act 2003.

Ofcom has published guidance on how it will consider a change of control. A change of control can occur depending on a number of factors. These include: the level of shareholding acquired; voting rights; the company's constitution and management controls; and funding arrangements. Ofcom will be seeking submissions from ITV and BSkyB in order to consider the position. Ofcom will normally aim to decide whether there has been a change of control within six weeks.

The Office of Fair Trading (OFT) is responsible for considering whether there is merger for competition purposes. As the sector regulator, Ofcom liaises with the OFT on its assessment of any merger in the communications sector.

In addition, if there is a merger, the Secretary of State for Trade and Industry may choose to ask Ofcom to consider whether there are any broadcasting and cross-media public interest considerations, including issues of plurality of ownership. Were such a test to be requested by the Secretary of State, Ofcom would conduct the relevant enquiries and would then advise the Secretary of State of any considerations for him to take into account in his deliberations.

Ofcom will provide further updates in due course as and when these are available. However, in the meantime we cannot comment further.

Further details on Ofcom current guidance on the definition of control of media companies can be found in the Related Items.

Ends.

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