Virgin Media has started a High Court action against BSkyB to prove that it is abusing its dominant position in the UK’s subscription TV market.

According to Virgin, the action is a result of Sky withdrawing its ‘basic’ channels from Virgin’s TV service after the companies failed to agree a price. Virgin alleges that Sky, which controls 70 per cent of the UK subscription TV sector, deliberately tried to stifle competition from Virgin TV by demanding double the fees Virgin pays to offer Sky’s basic channels. It also said that Sky forced it to accept an 85 per cent reduction in the fees Sky pays to Virgin for the use of its Living, Bravo and Trouble channels.

“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,” said Virgin Media CEO, Steve Burch. “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.”

Sky has denied any wrongdoing. Mike Darcey, Sky’s chief operating officer, has countered:

“This action is without foundation and is an obstacle to bringing back Sky’s basic channels for Virgin Media customers. The best and quickest way to give customers what they want is to resume negotiations and we’ve invited Virgin Media to return to the table.”

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