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Sky's ITV deal referred to watchdog
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24 January 2007
Trade and Industry Secretary Alistair Darling made the move after considering reports from the Office of Fair Trading and media regulator Ofcom.
BSkyB bought the stake for £940 million in November, but drew fire from Sir Richard Branson for stifling competition in the British media.
Virgin boss Sir Richard, who at the time was merging his Virgin Mobile business with cable operator NTL, saw plans for a merger between the new company and ITV effectively scuppered by the BSkyB acquisition.
The investigation will look at the effect of the transaction on competition, as well as consider public interest issues relating to the "plurality of persons with control of media enterprises".
BSkyB is 39%-owned by Rupert Murdoch's News Corporation. Mr Murdoch is chairman of the pay-TV operator.
Mr Darling said: "My decision reflects consideration of the reports I have received from both the Office of Fair Trading and Ofcom and of other representations I have received about this matter.
"On the basis of the evidence before me, a fuller investigation by the Competition Commission is justified."
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