Sky Italia, the Italian subsidiary of Newscorp, will be allowed to participate in the future tender for the allocation of digital terrestrial television (DTT) frequencies in Italy. It was dispensed by the European Commission, on 20 July, from the commitment given in 2003 when News Corporation Limited (Newscorp) took over the pay channel Stream and merged it with its rival Telepiù.

At the time, due to the virtual monopoly on the pay TV market in Italy, the EU executive decided to limit the market power of the entity resulting from the merger, Sky Italia, in pay TV, prohibiting it from participating in tenders for the allocation of DTT frequencies or multiplexes.

MULTIPLEXES

The company could only offer pay TV on satellite until 31 December 2011. In November 2009, however, Sky Italia applied to the Commission to be relived of the commitment on access to DTT so as to be able to participate in the future tender for five new DTT multiplexes.

Considering the changes in market conditions (entry of other players and development of DTT) and the importance of the future tender for access to the DTT platform in competition with the incumbent broadcasters, which hold 16 of the 21 multiplexes reserved for digital TV broadcasting, the Commission agreed to review its position. It nevertheless set the condition that “Sky Italia must limit its bid to one multiplex and, if it is allocated by the Italian authorities, to use it only to broadcast free-to-air TV for a period of five years”.