Sky may face EC challenge

Plans to block broadcasting giant Sky's monopoly of Premiership football look more likely following the latest outburst from European Union competition commissioner Mario Monti.

He has branded the Premier League's decision to continue to sell live football rights to Sky as "bad for competition" and is rumoured to be preparing an official objection to the deal.

The Premier League decided in August to give Sky the rights to all live football packages. The move came despite an investigation by the European Commission (EC) which considered its monopoly of TV football as "tantamount to price fixing".

Mr Monti said: "The announcements so far made by the Premier League suggest that Sky has an even greater monopoly over live TV rights than was the case in the past."

Trade leaders have welcomed the move and are hopeful that it may put pressure on the Office of Fair Trading (OFT) to intervene.

There has been outrage from trade leaders, pubcos and licensees who believe that Sky is abusing its position as sole broadcaster.

Tony Payne, chief executive of the Federation of Licensed Victuallers' Associations, said: "The Premier League brought in four packages to combat the EC concerns but Sky can create a monopoly by making a bid that no-one can compete with."

Licensee Charlie Way, of the Legh Arms in Knutsford, near Manchester, has welcomed the move. "I think it's excellent news. My fees went up 22 per cent this year. There must be a fairer way of charging," he said.

Louise Newman, spokeswoman for Sky, said: "Sky is pleased to have won the rights.

"This investigation is a matter for the EC and the Premier League."

Licensees are being urged to send concrete information about the value and the cost of Sky to their businesses to the Association of Licensed Multiple Retailers.

The trade body needs examples by the end of this month to give to the OFT which can be emailed to xavpubyyf@nyze.bet.hx​