BSKYB FREED FROM TWO UNDERTAKINGS

THE Office of Fair Trading have notified BSkyB that they need not observe two undertakings they gave in 1996.
The OFT continues their wider Competition Act investigation into BSkyB, which is due to be completed this summer.
The two undertakings relate to: the need for BSkyB's basic channel Sky One to be on its rate card. The OFT have concluded that Sky One does not have or confer a dominant position and therefore can be removed from the ratecard; the need for BSkyB to maintain and provide to the OFT separated accounts. The OFT have decided that this is not necessary as the Director General can now use his powers under the Competition Act to obtain the relevant information.
The OFT does not consider BSkyB’s non-statutory undertakings to be legally enforceable anyway, but BSkyB must of course comply with the Competition Act. If BSkyB were not to observe their non-statutory undertakings, the Director General would not make a reference to the Competition Commission under the Fair Trading Act 1973, but rather would use his powers under the Competition Act if their provisions had been infringed. (CD)