Sky TV gets slapped with a wet bus ticket

Sky TV has got off extremely lightly after the Commerce Commission found its previous contracts may have breached the Commerce Act, said Labour Broadcasting spokesperson Kris Faafoi and associate ICT spokesperson Clare Curran.

“Sky TV is a monopoly broadcaster so it is extremely concerning that the Commerce Commission has found it may have entered into contracts that reduced competition,” said Kris Faafoi.

Sky should consider itself extremely lucky today. The ruling is a cop out from the Commission. A monopoly as powerful as Sky should not be able to get away with uncompetitive behaviour. It is a kick in the guts to consumers.

“The Commission appears to have decided not to take any action because a case would cost too much and take too long. That’s not good enough. It should do its job as a regulator,” said Kris Faafoi.

“The Commission claims that Sky’s monopoly in the content market has not created harm. Tell that to the Telcos and broadcasters. They have said for a long time that barriers to content deals with providers such as Netflix and Hulu are preventing the growth of the industry which will drive uptake of ultra-fast broadband,” said Clare Curran.

“If for no other reason the Government should be worried that future ultra-fast broadband content deals may be constrained by the Commission’s inaction.

“The Commerce Commission should take this to the next level, which is an inquiry. If there have been breaches they should be dealt with. If the Commerce Act needs an overhaul then Labour will consider it.

“We need fairness in the system for all players including Sky. But we can’t condone monopolistic practices continuing because of clumsy and cumbersome provisions in law.

“This shows the need for a converged regulatory framework for broadcasting and ICT to deal with the changing nature of the industries,” said Clare Curran.

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