BT Sports complaint rejected by Ofcom

Media regulator Ofcom has ruled that Sky did not breach any rules by not advertising BT Sport channels on Sky Sports.

BT lodged a complaint claiming that Sky was ‘discriminating’ against the telecommunications giant by not allowing its new BT Sport channels to be promoted on Sky Sports channels.

BT claimed that Sky had breached the Code on the Prevention of Undue Discrimination between Broadcast Advertisers (“the Code”). Rule 4.1 of the Code provides that “A television broadcaster must not unduly discriminate between advertisers that seek to have advertising included in its licensed service.”

“Our view in relation to the discrimination between Sky and BT is that Sky is pursuing a legitimate commercial interest. We also consider, given the limited extent of the effects on BT, that Sky’s approach is proportionate to its aim. We therefore consider that Sky has not unduly discriminated against BT in that respect.” – Ofcom

Sky cited brand and revenue protection for its reasoning not to promote the new BT Sport channels. It was announced last year that BT had won the rights to two premier league packages at a cost of £246 million per season.

BT has created two sports channels which will go live in August. From the 31st July, ESPN will be operated by BT after it was bought earlier this year. BT argued that because Sky Sports channels, which include Sky Sports 1 and Sky Sports News, had advertisements for ESPN services that this showed Sky was being ‘unfair’ towards BT.

Sky revealed that they had a distribution agreement with ESPN prior to BT’s decision to buy the sports brand. Sky cited the difference in commercial interests; with ESPN being a pay TV broadcaster and BT Sport using its platform to ‘attract and retain’ phone and broadband customers. BT have been running an advertising campaign which is offering the new BT Sport channels free if you are a BT broadband customer.