AGCM

Proceedings launched following a complaint by broadcaster Conto TV

The Italian Competition Authority, at its meeting on 2 October 2008, decided to open an investigation to determine whether Sky Italia's conduct with regard to Conto TV constitutes an abuse of its dominant position.

The investigation, which was notified to Sky during the course of inspections carried out in collaboration with the Special Branch of the Guardia di Finanza (Fiscal Police), was prompted by a complaint from Conto TV, a broadcaster transmitting pay-TV programmes on the satellite platform, on the internet and, in some areas of the country only, on digital terrestrial.

The complaint claims that the conditions Sky imposes on Conto TV for the purchase of the services necessary to access its technical platform are defined in a non-transparent manner, do not reflect Sky's underlying costs and are particularly high in absolute terms in the case of programmes of greatest viewer interest, such as football matches. Basically, the allegation is that the economic conditions demanded by Sky constitute anti-competitive behaviour that compromises Conto TV's ability to compete.

The investigation, which must be completed by 31 December 2009, aims to determine whether the  economic conditions Sky imposes on Conto TV are indeed of a discriminatory nature and constitute an  abuse of a dominant position with intent to exclude potential competitors by limiting their ability to compete in the purchase of ‘premium’ content and thus the development of competition in the Italian pay-TV market, to the detriment of consumers in terms of higher prices and reduced variety and quality of programming.

Rome, 3 October 2008