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The U.K. Competition and Markets Authority (CMA) is investigating the joint venture between Warner Bros. Discovery and telco giant BT.

The entities had revealed a premium sports venture in May, for the U.K. and Ireland. The planned 50-50 joint venture would see BT Sport transferred to Warner Bros. Discovery, meaning that BT Sport and Eurosport U.K. are operated together. The venture will have one of the most extensive portfolios of premium sports rights including UEFA Champions League, UEFA Europa League, the Premier League, Premiership Rugby, UFC, the Olympic Games, tennis Grand Slams featuring the Australian Open and Roland-Garros, cycling Grand Tours including the Tour de France and Giro d’Italia and the winter sports World Cup season.

Launching an investigation into the venture, the CMA said: “The Competition and Markets Authority is considering whether it is or may be the case that this transaction if carried into effect, will result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation may be expected to result, in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.”

In the first phase of the investigation launched June 1, the CMA has invited comment on the venture, open till June 17. Following this, the CMA will decide by July 28 whether to launch a second phase of the investigation.

A Warner Bros. Discovery spokesperson told Variety: “Our recent announcement with BT Group referenced that the transaction is subject to customary closing conditions including approvals by the relevant regulatory bodies. As such, this is a normal step in the process.”

Under the terms of the deal, BT Sport and Eurosport U.K. will initially retain their separate brands and product propositions before being brought together under a single brand in the future. The joint venture will also enter into a new agreement with Sky extending beyond 2030 to provide for its distribution of the venture’s combined sports content.

The CMA is very active in maintaining an even keel when it comes to competition in the U.K. A recent high profile decision came in 2021 when it ordered social media giant Meta, formerly known as Facebook, to sell GIF provider Giphy, concluding that the “acquisition of Giphy would reduce competition between social media platforms.”