The Office of Fair Trading has said it is to investigate BSkyB’s £125m takeover of the consumer electronics firm Amstrad.
The OFT will study the relationship between manufacturer and platform operator and whether the deal would constitute a “substantial lessening of competition”. Amstrad currently supplies BSkyB with 30% of its set-top box inventory, but the concern would be that Sky’s grip on the market would be too great. The OFT could refer the purchase to the Competition Commission.
BSkyB has said the purchase would allow in to benefit from in house design and innovation.
The satellite platform is already facing regulatory scrutiny following its purchase of 17.9% in broadcaster ITV. Separately, Ofcom is looking into proposals by Sky and National Grid Wireless to turn its three DTT channels into a pay-TV offering. BSkyB’s influence will also come under investigation as part of Ofcom’s investigation into the pay-TV market.
