DTI CLEARS MICROSOFT’S STAKE IN TELEWEST

STEPHEN Byers, the Secretary of State for Trade and Industry has announced that he has decided not to refer the acquisition by Microsoft Corporation of a 23.6 per cent interest in Telewest Communications.
Telewest are one of Britain’s leading digital communications groups. Their content division, Flextech, is among the biggest providers of basic channels to the UK pay-TV market and partners the BBC in the joint UKTV venture.
Byers made his decision in accordance with the recommendation of the Director General of Fair Trading (DGFT).
The Minister said: “The DGFT has advised me that the relevant market in this case provision of software to all digital set top boxes. The DGFT has also advised me that, having carried out an investigation into the complex issues raised by the case, he has seen no evidence that Microsoft’s stake in Telewest gives rise to sufficient competition concern to recommend a reference to the Competition Commission. I announced on October 26 that my policy would be to accept the advice of the DGFT on whether or not to refer merger cases to the Competition Commission, save in exceptional circumstances. I have considered the DGFT’s advice on the Microsoft/Telewest case very carefully and have decided to clear the merger in accordance with his recommendation.”
The merger qualified for investigation under the assets test of the Fair Trading Act 1973.