Pay-TV Firm BSkyB Focus of Probe by Britain’s Antitrust Regulator

British Sky Broadcasting, Europe’s second-largest pay-television company, is under investigation by Britain’s antitrust regulator for possible infringement of competition laws.

The Office of Fair Trading said it’s investigating the company under the Competition Act that took effect in March, and will focus on BSkyB’s wholesale supply of pay-TV.

The office in January began reviewing restrictions placed on BSkyB in 1996, as the company faces increasing competition from digital television and cable operators. BSkyB, 38% owned by Rupert Murdoch’s News Corp., has been the No. 1 supplier of pay-TV in Britain since it started in 1989.

“Certain information came to light during [January’s] review process, which suggests some of the prohibitions may have been infringed” by BSkyB, said a spokesman for the Office of Fair Trading.

The Competition Act prohibits the abuse of a dominant market position and agreements or practices that hurt competition in Britain.

The investigation is expected to take six months, the spokesman said. He declined to give details. “We’ve got new powers,” he said. “We felt we had to carry out the investigation.”

Among other restrictions, BSkyB is required to sell some of its most popular Sky channels individually, rather than forcing cable operators to buy them as part of a package of channels.

It has also agreed to publish the rates it charges cable companies to carry its channels, and the rates must be approved by the OFT.