Rapture legal action rumbles on

Satdude

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Rapture legal action rumbles on

Rapture TV is pursuing BSkyB, and Ofcom, and is appealing against a decision that BSkyB had not overcharged Rapture in terms of Sky's EPG fee. It is an important test case, being heard at the Competition Commission Appeal Tribunal in London.

Rapture TV is a now-defunct TV channel (but available on the internet) that because of poor revenues asked BSkyB to reduce its £78,500 fee for an EPG entry. It's a complex case but Rapture's CEO David Henry thinks he is in sight of winning. Rapture's core claim to the tribunal is that Sky ignored its request to lower the EPG listing fee. Rapture's lawyers argued that Sky also ignored its regulatory obligation to offer a reduced fee - hence the involvement in the action by regulator Ofcom.

Christopher Vajda QC, on behalf of Ofcom, said it was not for Ofcom to second guess the Sky business model. "Ofcom's job is to ensure the price Sky charges third parties is fair, reasonable and non-discriminatory." But Vajda admitted that five channels were receiving beneficial EPG rates.

Peter Roth QC, representing BSkyB told the tribunal that Rapture simply was not a viable business and its failure had nothing to do with the level of the EPG charge. "Even on the basis of the additional [financial] material that Rapture provided to Ofcom, [Sky] decided there was no reason to differentiate from the rate card."

David Henry, speaking after the appeal, said he felt the hearing had gone well for Rapture. He added that the three parties in the dispute had agreed a clear understanding of what the "Sky Platform" was, and importantly that the EPG element was NOT part of the Conditional Access function even though the set-top box subsidy is closely linked to CA and access to the platform.

Henry's view was that the Tribunal highlighted a concern that Ofcom had obtained information from Rapture, including business plans etc., under the Section 191 powers of the Communications Act 2003, and suggested that this could have been an abuse by Ofcom of its statuary powers.

Regards Satdude.
 
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