Britain's competition regulator has ruled that broadcaster BSkyB's purchase of a 17.9% stake in ITV, Britain's biggest commercial broadcaster, restricts competition.
The Competition Commission, publishing provisional findings of its investigation into the stake, said it would now consult on possible measures, including forcing BSkyB to sell the stake.
BSkyB spent £940m buying the stake last November in a move that effectively blocked cable group NTL - since relaunched as Virgin Media - which had said it was interested in buying ITV.
The Competition Commission said the stake could lead to a substantial lessening of competition by giving BSkyB the ability to influence ITV's strategy.
The regulator said, however, that it did not think the stake gave rise to competition concerns in other areas, such as advertising and news provision.
BSkyB declined to express a view on the Competition Commission's findings. 'We will continue to engage with the Commission during the remainder of this process,' it said in a brief statement.
