BSkyB monopoly on Premier matches to end

A new commitment from the Football Association will see the end of BSkyB's monopoly on television coverage rights of the English Premier League.
The European Commission has received improved commitments from the Football Association Premier League (FAPL) regarding the sale of media rights for the 2007 season onwards.
An investigation by the commission, under EC Treaty competition rules on restrictive business practices, into the sale by the FAPL of media rights to the Premier League competition on behalf of the individual clubs.
According to the EC deal, Live TV rights will be sold in six balanced packages with no one bidder being allowed to buy all six.
Packages will be sold to the highest standalone bidder for each package, and bids other than simple standalone bids will be disregarded.
Competition Commissioner Neelie Kroes said: “I am pleased to bring this long running case closer to a satisfactory outcome. The commitments offered by the Premier League should ensure that the media rights are sold in a fair and transparent manner and give British football fans greater choice and better value.”
The resulting rights auction will be monitored by a Trustee, selected by the Commission, who will report to the Commission as to whether the commitments entered into by the FAPL have been followed.
The Commission had raised concerns that in practice the FAPL’s implementation of the joint selling agreement deprived media operators and British football fans of choice, leading to "higher prices and reduced innovation".
A draft decision rendering the FAPL’s revised commitments legally binding will be sent to the competition authorities of the Member States for consultation.
A final decision on this is expected in the first quarter of 2006.
This will effectively bring BSkyB's £1 billion rights deal to an end.
In place since 2003, other broadcasters were prevented from showing live matches, and help boost the satellite television provider into top spot in the UK pay-tv league.
(SP/KMcA)