Shadow
21-04-2010, 13:54
*Sky's Ofcom appeal to be heard FridayWednesday, April 21 2010, Sky's appeal against the Ofcom-imposed price cut to its premium sport channels will be heard by the Competitions Appeal Tribunal (CAT) on Friday, it has been announced. According to a message on the CAT website, the honourable Justice Barling will hear the appeal at 10.30am on April 23. The satellite broadcaster officially lodged its application on April 16 against Ofcom's ruling that it must reduce the wholesale price of Sky Sports 1 and 2 by 23.4% for rival operators. Ofcom believes that the resulting increased competition from the move would bring fresh investment in services and a wider range of innovations for consumers. However, Sky said in its legal filing that Ofcom's new wholesale model will result in its business being "severely and irreversibly prejudiced" if it comes into force. The broadcaster therefore wants the judge to grant a suspension order on Ofcom's decision and make the regulator pay all of its legal costs to date. Under Ofcom's timetable, Sky has until May 14 to provide a template contract for other pay-TV providers so that the new pricing plan can be implemented. Sky wants the appeal judge to grant "interim relief" on the timetable so that the firm can maintain its commercial position while the case is being heard. In the filing, Sky said: "The conditions [imposed by Ofcom] represent a far-reaching intervention into Sky's business which by its nature will be difficult fully to reverse and which is likely to cause damage for which Sky will not be compensated in the event that it is successful in its appeal."Last week, the Premier League also confirmed its intention to legally challenge Ofcom's new pricing model at the Competition Appeals Tribunal.*