LONDON — U.K. media regulator Ofcom said on Wednesday that it would launch an investigation into satcaster BSkyB over the wholesale supply of its sports channels after a complaint from telecom company BT.
BT has complained that BSkyB is abusing its market dominance by making the supply of its sports channels Sky Sports 1 and Sky Sports 2 to BT for its YouView digital TV platform conditional on BT offering its three upcoming BT sports channels to BSkyB.
A spokesman for Sky on Wednesday said: “Sky considers BT’s latest complaint to be entirely without merit. We look forward to engaging constructively with Ofcom.”
Ofcom says it plans to make a decision on interim measures by July, following a request from BT.
BSkyB and BT have evolved into fierce competitors given that Sky has moved into BT broadband domain. Earlier this year BT announced it would launch sports channels that it would give to customers of its broadband service. Sky hit back by reducing the price of its broadband service to Sky Sports customers.
Rupert Murdoch’s News Corp. owns a 39% stake in BSkyB.