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Premier League TV rights to be probed by Ofcom Premier League TV rights to be probed by Ofcom
(35 minutes later)
Ofcom has opened an investigation into how the Premier League sells live TV media rights for its football matches in the UK. Broadcasting watchdog Ofcom has opened an investigation into how the Premier League sells live TV media rights for its football matches in the UK.
It follows a complaint from Virgin Media, submitted to Ofcom in September. It follows a complaint from Virgin Media, which said more matches should be available for live broadcast.
In a statement, the Premier League said that the way it sold its audio-visual rights was "compatible with UK and EU competition law".In a statement, the Premier League said that the way it sold its audio-visual rights was "compatible with UK and EU competition law".
BSkyB and BT currently share the rights to televise Premier League football games. BSkyB and BT share the rights to televise Premier League football games.
The price for the latest rights deal - covering 2013-16 - rose by 70% to £3bn when it was announced in 2012.The price for the latest rights deal - covering 2013-16 - rose by 70% to £3bn when it was announced in 2012.
In a statement, the Premier League said: "We note that Ofcom has launched an inquiry. Ofcom has stated that this is at an early stage and it has not reached a view as to whether there is sufficient evidence of any infringement. 'Welcome news'
"The Premier League currently sells its audio-visual rights in a way that is compatible with UK and EU competition law and will continue to do so."
Number of games
The Premier League will soon be starting the bidding process for the next tranche of rights from 2016 onwards.The Premier League will soon be starting the bidding process for the next tranche of rights from 2016 onwards.
But Virgin claims that the current arrangements "for the collective selling of live UK television rights by the Premier League for matches played by its member clubs is in breach of competition law". Virgin claims that the current arrangements "for the 'collective' selling of live UK television rights by the Premier League for matches played by its member clubs is in breach of competition law".
In particular, it has raised concerns about the number of Premier League matches for which live broadcasting rights are made available.In particular, it has raised concerns about the number of Premier League matches for which live broadcasting rights are made available.
"Virgin Media argues that the proportion of matches made available for live television broadcast under the current Premier League rights deals - at 41% - is lower than some other leading European leagues, where more matches are available for live television broadcast," said Ofcom in a statement. Ofcom said: "Virgin Media argues that the proportion of matches made available for live television broadcast under the current Premier League rights deals - at 41% - is lower than some other leading European leagues, where more matches are available for live television broadcast."
Virgin argues that this "contributes to higher prices for consumers of pay TV packages that include premium sport channels and for the pay TV retailers of premium sports channels".
Tom Mockridge, Virgin Media's chief executive, called Ofcom's investigation "welcome news".
"The fact remains that fans in the UK pay the highest prices in Europe to watch the least amount of football on TV. Now is the right time to look again at the way live rights are sold to make football even more accessible," he said.
"We look forward to working constructively with the Premier League, the wider industry and Ofcom to ensure a better deal for football fans."
In a statement, the Premier League said: "We note that Ofcom has launched an inquiry. Ofcom has stated that this is at an early stage and it has not reached a view as to whether there is sufficient evidence of any infringement.
"The Premier League currently sells its audio-visual rights in a way that is compatible with UK and EU competition law and will continue to do so."
Kick-off timesKick-off times
Ofcom said the investigation would be carried out under the terms of the Competition Act.Ofcom said the investigation would be carried out under the terms of the Competition Act.
It added it was "mindful of the likely timing of the next auction of live UK audio-visual media rights, and is open to discussion with the Premier League about its plans".It added it was "mindful of the likely timing of the next auction of live UK audio-visual media rights, and is open to discussion with the Premier League about its plans".
Ofcom also says it will look at the issue of how many games are moved from their traditional 3pm kick-off times on Saturdays, because of TV scheduling needs. Ofcom also said it would look at the issue of how many games are moved from their traditional 3pm kick-off times on Saturdays, because of TV scheduling needs.
As part of this, it will approach the Football Supporters' Federation and certain other supporters' groups to understand their views.As part of this, it will approach the Football Supporters' Federation and certain other supporters' groups to understand their views.
When Virgin's initial complaint was made, the Premier League said its audio-visual rights had "always been sold in a transparent and open process".
"Regulators have examined our rights packaging and sales process in considerable detail in the past and found both of them to be compliant with UK and European competition law."