ITV drops complaint over Sky EPG

ITV has formally withdrawn its complaint over Sky's charges for use of the Conditional Access (CA) system.

The broadcaster had alleged that the £17 million it pays Sky for use of the software, which encrypts the channel and provides viewers with their correct regional variant, was "unfair, unreasonable and unduly discriminatory".

Ofcom had been investigating the matter since January but confirmed today that ITV had dropped the complaint.

"We have consistently maintained that we offer conditional access services including regionalisation on fair, reasonable and non-discriminatory terms," said a Sky spokesperson. "ITV has effectively acknowledged this by withdrawing its complaint to Ofcom. The offer of conditional access charges, which we made to ITV last year, is still open for acceptance by ITV."

ITV is now faced with the choice of accepting a new deal for use of the CA or following in the footsteps of the BBC by broadcasting in the clear.

"Negotiations have re-opened with Sky in relation to regionalisation services for ITV1 and as a result ITV has requested that Ofcom suspends investigation of its current complaint pending the outcome of these negotiations," said an ITV spokesperson.

"ITV will not hesitate to re-submit the complaint if it judges that Sky's proposed charges for regionalisation services continue to be unfair, unreasonable and discriminatory. In this event Ofcom will reactivate the complaint at the point at which it was suspended."