ITV urges total divestment of Sky's stake

ITV has urged the Competition Commission to force the total divestment of Sky's 17.9% stake in the broadcaster.

Last month, the commission found that Sky's stake in ITV "restricts competition" and acts "against the public interest". It suggested that a full divestment of the shareholding would be a possible remedy, and ITV has now said that it views that as "the only" remedy.

"Any other remedy would not fully address each of the heads of material influence which BSkyB holds," ITV told the commission. "Furthermore, such a remedy is both consistent with the Competition Commission’s broader principles as regards remedies and would avoid the difficulties of supplementary behavioural remedies."

It added that a full divestment "would not be disproportionate" and that other remedies "would not be effective or comprehensive".

ITV said: "In particular, neither behavioural remedies nor a divestment to 9.9% would satisfactorily address the heads of material influence identified by the Competition Commission. ITV is also concerned that a reduction in BSkyB’s stake to 4.9% would not address all of the heads of material influence. However, if the Competition Commission were minded to propose a partial divestment, a reduction to 4.9% (accompanied by a prohibition on seeking or accepting board representation) would at least begin to address ITV’s concerns and would have a sounder analytical base than a reduction to 9.9%."

The broadcaster added that "there are a number of strategic investments currently under active consideration by ITV" and that were those investment decisions subject to Sky's influence, a "substantial lessening of competition" would result.