7th Aug 2015 05:39
LONDON (Alliance News) - UK media and communications regulator Ofcom on Thursday opened an investigation into Sky PLC after complaints made by consumers that the company had ignored their requests to cancel their contracts with the broadcaster and telecommunications group.
Ofcom said it has opened an investigation into Sky after it received complaints that it was making it difficult for consumers to cancel their subscriptions. It comes as part of a probe launched by the regulator into the way that providers across the board give consumers the opportunity to cancel their contracts.
The new probe will look at FTSE 100-listed Sky's television, phone and broadband services.
In its statement, Ofcom said it will look into whether Sky is in breach of the GC9.3 rule, which is designed to ensure that conditions and procedures put in place by providers for contract termination do not act as a disincentive for users to change their communications provider.
"Ofcom's investigation will examine whether there are reasonable grounds for believing that Sky has failed to comply with these obligations," the watchdog said.
It is the latest in a recent salvo of investigations Ofcom has launched into the telecommunications market amid the ongoing battle between Sky and rival BT Group PLC.
In July, Ofcom launched a supplementary consultation over whether Sky's insistence that rivals supply key sports content in order to get access to its own sports content "would prejudice fair and effective competition."
Earlier in the same month, Ofcom tabled a number of potential reforms for the UK communications market on the table, including forcing BT to separate out its Openreach infrastructure arm, a move Sky has called for on numerous occasions. When Ofcom outlined its plans, Sky renewed its calls for an Openreach spin-out, suggesting there would likely be "significant net benefits from establishing Openreach as an independent company."
By Sam Unsted; [email protected]; @SamUAtAlliance
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