The investigation follows an initial assessment by the Director
General of Fair Trading (DGFT) into the venture. The BSkyB and
Ladbrokes partnership hopes to combine technology, management and
marketing functions “to develop the growing demand for interactive,
internet and telephone gaming and betting.”
Trade & Industry Secretary, Patricia Hewitt said that the
DGFT’s examination found the scheme “raised concerns which warrant
reference to the Competition Commission.”
The Commission has two distinct functions, to inquire into and
report on matters referred to it by the other UK competition
authorities concerning monopolies, mergers and the economic
regulation of utility companies and to hear appeals against
decisions of the DGFT.
The partnership between BSkyB and Hilton, which owns Ladbrokes,
was proposed in July in an effort to exploit the opportunities
presented by interactive TV. David Michels, Hilton CEO
explained;
“This partnership means Ladbrokes and BSkyB
will be the first companies in the world to develop betting via
interactive television to its full potential.”
Effectively, viewers would be able to access their betting
accounts via telephone, WAP phone, internet and television.
In response to the investigation Michels stated his optimism
that the venture would satisfy competition law requirements.
“The at-home betting market is highly
competitive and there are already a number of interactive betting
operations that would compete strongly.”
Fair trading laws allow ventures to be referred to the
Commission if they “create or increase a market share of 25% of the
supply of particular goods or services” or, “involve the takeover
of assets worth more than £70m.”
