BSkyB loses ITV legal challenge

BSkyB has lost its legal challenge to the Competition Commission's decision forcing the firm to reduce its stake in rival broadcaster ITV.

The firm has been told to cut its holding in ITV from 17.9% to below 7.5% by the Competition Appeal Tribunal.
Previously, the commission said that BSkyB's stake thwarted competition and allowed it unfair influence over ITV.
BSkyB bought the stake in 2006 in a deal which effectively blocked NTL, now renamed Virgin Media, from buying ITV.
'Undermined'
In April 2007, the Office of Fair Trading reported that BSkyB's acquisition of its stake in ITV shed doubt on the independence of ITV, prompting the Competition Commission to launch a probe.
Virgin boss Sir Richard Branson, consumer groups and the regulator Ofcom all opposed the purchase.
A Virgin Media spokesperson welcomed the ruling saying that the BSkyB stake had "compromised" ITV's independence.
"We've consistently maintained that this undermined the plurality of the UK's media and reflected a systematic effort to suppress competition."
BSkyB had argued that forcing it to reduce its ITV stake was unreasonable and a disproportionate remedy - particularly as BSkyB had said it would surrender its voting rights.
It said it would "review the judgement carefully and decide on next steps in due course".