Open Digital's response to the 2nd BSkyB takeover consultation

The Open Digital Policy Organisation Limited,
Reeds Industrial Park
Reeds Road
Frensham
Surrey GU10 3BP


8th July 2011


Dear Secretary of State,

The Open Digital Policy Organisation reiterates the view of its CEO, James Firth, submitted to the first consultation on the 17th March 2011, and reproduced in full here: http://ejf.me/dB

In summary, issues of media plurality in the digital age cannot be considered without looking also at the internet; and, in particular, the privileged position an internet service provider (ISP) like Sky Broadband, owned and operated by BSkyB, holds in its ability to sway - or even restrict - the choice of online news sources available to its subscribers.

Such distortion can come through cross-promotion or price bundling of subscription news services, such as News International's Times Online service, with BSkyB services.  This may or may not unfairly distort the market for other online news providers, and we believe the proper way to assess this concern is for a full competition inquiry.

Distortion could also come through restrictive practices that break principles of so-called network neutrality - but Open Digital Policy believe this issue needs to be addressed separately; in a way that best ensures all ISPs see the market benefit of offering an open internet, and are prevented by law from employing anti-competitive practices in the management of their networks.

We also re-iterate James' concern about potential to distort the market for advertising crucial in supporting news organisations, and therefore critical to the plurality of the press in the UK. With a potential for bundled print, TV and internet advertising deals; again, we believe a Competition Commission inquiry would be the proper place to assess any impact on other news outlets should BSkyB and News International be in a combined position to offer cross-channel advertising deals.

James Firth

CEO, and on behalf of, Open Digital Policy Organisation Limited