Decision Nº M/05/069 from Competition and Consumer Protection Commission, 2005-11-24

• Jurisdiction: Ireland
• Parties: Easynet,Sky Broadband
• Date: 24 November 2005
• Decision Number: M/05/069
• Status: Preliminary investigation (Phase 1)
• Court: Competition and Consumer Protection Commission (Ireland)
• Decision Date: 24 November 2005

1

Determination of the Competition Authority, dated 24 November

2005, under Section 21 of the Competition Act, 2002 in respect of

Merger Notification Case No. M/05/069 - Proposed acquisition by

Sky Broadband Services Limited of Easynet Group plc.

Introduction

1. On 28th October 2005, the Competition Authority, in accordance with

Section 18 (1) of the Competition Act, 2002 (“the Act”), was notified

on a mandatory basis of a proposal whereby British Sky Broadcasting

Group (“BSkyB”), through Sky Broadband Services Limited (“Sky

Broadband”), would acquire the entire issued and to be issued share

capital of Easynet Group plc (“Easynet”). It is proposed that after

completion of the merger, Easynet will become a wholly-owned

subsidiary of Sky Broadband.

2. The Authority advised the Parties and the Minister that it considered

the transaction to be a “media merger”, within the meaning of Section

23 of the Act.

The Parties

3. Sky Broadband, the acquirer, was incorporated on 6 October 2005 for

the sole purpose of acquiring Easynet and has no business dealings

other than in connection with the acquisition of Easynet. It is a wholly-

owned subsidiary of BSkyB.

4. BSkyB is a broadcaster and retailer of television channels in the

United Kingdom and Ireland with its headquarters in the United

Kingdom.

5. Its main activities in the United Kingdom and in the State are:

• The creation of television channels and their content;

• The wholesale and retail distribution of television channels via

Direct to Home (“DTH”) and Digital Subscriber Line (“DSL”);

• The retail distribution of three of its wholly-owned channels (Sky

News, Sky sports News and Sky Three) which are broadcast via

Digital terrestrial television (“DTT”) in the United Kingdom;

• The provision of conditional access, access control, electronic

programme guide and customer management services to

broadcasters and interactive service providers on the DTH

platform;

• The sale of advertising time and sponsorship on BSkyB’s wholly-

owned channels and on behalf of certain joint venture channels

and other channels owned by third parties;

• The operation of interactive services on the DTH platform; and

• The provision of fixed-odds betting services.