Virgin begins legal challenge against Sky

by Harriet Dennys, Media Week 13-Apr-07, 11:00

LONDON - Virgin Media has filed legal proceedings against BSkyB in an attempt to resolve the dispute surrounding Sky's withdrawal of its basic channels from Virgin Media TV.

Virgin's high court proceedings also seek to remove what it calls the "onerous rates" imposed by Sky for carriage of Virgin Media TV channels on Sky's satellite TV service.

Virgin argues that Sky, which holds almost 70% of the country's pay-TV subscribers, is dominating the market and has "engaged in a strategy to stifle competition".

Steve Burch, Virgin Media chief executive, said: "This dispute is one very specific example of how UK consumers are being denied the benefits of a diverse, dynamic and competitive pay-TV market.

"Litigation is obviously a serious step and a last resort but we are determined to have these issues resolved as quickly and fairly as possible."