Tech

Updated: Sky loses docs ruling in Virgin dispute

Published Thursday, May 15 2008, 10:51 BST | By Dave West
The Court of Appeal has rejected a request from Sky regarding a pre-trial disclosure package pertaining to the firm's carriage dispute case with Virgin Media.

Sky had sought confirmation that the lawyers who saw the documents would not also be working on two other ongoing matters involving both firms. Virgin is employing legal firm Ashursts for the carriage case, its appeal against a Competition Commission ruling on Sky's stake in ITV and the Ofcom review of the pay TV market.

Three Court of Appeal judges dismissed Sky's argument and ordered the firm to pay £40,000 costs to Virgin.

A Sky spokeswoman today said it had already handed over the 7,900 confidential documents and that it was simply seeking assurances from Ashursts.

Virgin filed legal proceedings at the High Court in April last year claiming Sky's carriage costs were "stifling competition". The case is now not expected to go ahead in earnest until next year.

The Sky spokeswoman added: "The hearing was about purely procedural matters. It does not affect the substantive issues or our resolve to defend ourselves against Virgin Media's misconceived and groundless claim."

Neil Berkett, Virgin Media's chief executive, this week said that, though there was no personal animosity between himself and Sky CEO Jeremy Darroch, the dispute had not been resolved and was proceeding "in court".

In the second case, Sky was ordered in January to reduce its 17.9% stake in ITV to below 7.5%. Both Sky - saying it should be allowed to keep the shares - and Virgin - which wants them all to be sold - have appealed the Competition Commission ruling.

Their respective arguments will be heard by a Competition Appeal Tribunal scheduled for June 3.
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