Sky has accused former Ofcom chief executive Ed Richards of being “demob happy” after he said he felt vindicated by the outcome of the regulator’s legal battles with the satellite broadcaster over sports rights and competition issues.
Richards used an interview last month to complain of the “unhelpful” legal battles Ofcom fought with Sky after the broadcaster used the courts to challenge a series of rulings by the regulator.
They included its landmark ruling in 2010 requiring Sky to offer its sport channels to other pay-TV operators to ensure fair and effective competition, prompting years of legal wrangling.
“My regret is that we have spent years and years in court and millions and millions of pounds in a court battle which takes too long, costs too much and I don’t think is particularly helpful,” said Richards.
“What we set out to do was promote competition in the context of what was then a highly concentrated market and I think we have achieved that. I think there is now more choice, more competition and more retail innovation.”
Graham McWilliam, group director of corporate affairs at Sky, said: “After eight years running Ofcom, Ed Richards could be forgiven for being a little demob happy as he reflects on his time as chief executive.
“However, his memory is mistaken if he feels ‘vindicated’ in relation to the long-running legal case over Ofcom’s decision to force Sky to supply certain sports channels at prices set by the regulator,” McWilliam said in a blog post published on Friday.
“At this time, the final outcome is yet to be determined and Ofcom’s core argument in favour of intervention has been found in court to be without foundation, the regulator having misinterpreted evidence to a significant extent. Contrary to what Mr Richards appears to suggest, that ruling has not been overturned in subsequent hearings.
“While it may be ‘unhelpful’ in his eyes for Ofcom decisions to be subject to appeal, it is hardly surprising that companies should seek independent judicial scrutiny when they believe, as Sky does in this case and as the court has confirmed, that the regulator has made serious mistakes.”
The interview, published in the Independent on 29 December, said Richards “felt vindicated” by court rulings in the regulator’s favour.
Ofcom launched a public consultation into its 2010 ruling last month, saying Sky’s dominance of UK pay-TV sports rights could still harm competition.
Richards, who stepped down from Ofcom at the end of the year, claimed the litigation system was “out of kilter … It’s a bit too easy to appeal the decisions, it’s a bit too easy to delay the effective decisions, a bit too easy for very large companies to throw money at litigation as a tactic, and I think that skews things against smaller companies”.
Richards also used the interview to accuse government representatives of showing favouritism to Rupert Murdoch’s companies and said he was “surprised” by the informality of contact between executives and ministers during the failed bid by Murdoch’s News Corporation for BSkyB in 2011.
Richards will be succeeded by former Treasury official Sharon White in March.
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