Ashurst advises Virgin Media in relation to Sky/ITV acquisition

21 January 2010

Ashurst acted for Virgin Media before the Court of Appeal in relation to the Secretary of State and Competition Commission's decisions in respect of Sky's acquisition of a 17.9 per cent stake in ITV. Virgin Media supported the Competition Commission and Secretary of State in successfully resisting Sky's challenge to the judgment of the Competition Appeal Tribunal, which had upheld the decision of the Secretary of State that the transaction gave rise to a substantial lessening of competition and that Sky should sell its shareholding to below 7.5 per cent. Sky's appeal was rejected by the Court of Appeal, upholding the judgment of the Competition Appeal Tribunal.  Unless it persuades the Supreme Court to hear the case, Sky will now be required to sell down its stake to 7.5 per cent.

The Court of Appeal reversed the Competition Appeal Tribunal's judgment in relation to the interpretation of the media plurality provisions of the Enterprise Act 2002, although the issue had no practical impact due to Sky's appeal being dismissed. Judgment was handed down on 21 January 2010.

The Ashurst competition team comprised partners Nigel Parr and Duncan Liddell, with senior associate Ross Mackenzie. Litigation partner Ben Tidswell with senior associate Lauren Bernard.

 

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