1999/781/EC: Commission Decision of 15 September 1999 relating to a proceeding under Article 81 of the EC Treaty (Case IV/36.539 - Britisch Interactive Broadcasting/Open) (notified under document number C(1999/2935)) (Only the English text is authentic)

• Articles: 6

Article 1

Pursuant to Article 81(3) of the EC Treaty and subject to Article 2 of this Decision, the provisions of Article 81(1) of the EC Treaty area hereby declared inapplicable, for a period of seven years from 4 August 1998 to:

(a) the joint venture agreement for the creation of a joint venture company, British Interactive Broadcasting Ltd (now named Open) by BSkyB Limited, BT Holdings Limited, Midland Bank plc and Matsushita Electric Europe (Headquarters) Limited as notified on 13 June 1997 and amended on 4 August 1998;

(b) all the related agreements notified to the Commission for the creation of British Interactive Broadcasting Ltd set out in Annex I to this Decision.

Article 2

The exemption set out in Article 1 of this Decision shall be subject to the following conditions:

Condition No 1: (Legal separation of BiB box and services operations - auditors)

The auditors who are required to certify on an annual basis that the marketing contribution activities of McCo. have been undertaken at arms' length to the activities of BiB Services Co. will interpret the term "arms' length" in accordance with the transfer pricing guidelines.

Condition No 2: (Information on the removal of subscription tie between BiB boxes and BSkyB services)

A. The BiB Parties will procure that retailers who sell digital interactive reception equipment with the benefit of marketing contributions and installers of such equipment are informed in writing that there is no requirement that a purchaser of such equipment should take out a subscription to any pay-television services and that services other than BSkyB's services will be available via the BiB box including those non-subscription services which are transmitted via digital satellite for reception on BiB boxes. The BiB Parties will further require that purchasers of equipment benefiting from marketing contributions are advised in writing at the point of sale that there is no such requirement and that services other than BSkyB's services will be available via the BiB box including those non-subscription services which are transmitted via digital satellite for reception on BiB boxes.

B. BSkyB will put in place written procedures, of which it will provide copies to the Commission, to ensure that all of its analogue customers, when offered a subscription to BSkyB's digital satellite services ("Sky Digital Subscription"), are informed clearly in writing (by notice approved in writing by the Commission) that there is no requirement for them to take out a Sky Digital Subscription in order to be eligible to purchase a BiB box and that services other than BSkyB's services will be available via the BiB box including those non-subscription services which are transmitted via digital satellite for reception on BiB boxes.

C. BSkyB will put in place written procedures, of which it will provide copies to the Commission, to ensure that its agents for the sale of Sky Digital Subscriptions who also sell BiB boxes are informed clearly in writing that there is no requirement on the purchaser to take out a Sky Digital Subscription in order to be eligible to purchase a BiB box and that services other than BSkyB's services will be available via the BiB box including those non-subscription services which are transmitted via digital satellite for reception on BiB boxes.

Condition No 3: (Availability of a clean feed)

Where movies and/or sports programming (but not advertising time paid for by parties other than BSkyB or BiB) on any of BSkyB's movies and/or sports channels includes on-screen representations directing the viewer to BiB's digital interactive television services and/or BSkyB's enhanced movies and/or sports television services, BSkyB will give distributors of such channels, on a non-discriminatory basis, an option either:

(i) where the distributor is also a distributor of BiB's digital interactive television services and/or BSkyB's enhanced movies and/or sports television services (as the case may be), to receive a signal for the channel(s) which include(s) the on-screen representation and interactive applications (authored in BSkyB's chosen technology) directing the viewer to such of BiB's digital interactive television services and/or BSkyB's enhanced movies and/or sports television services as the distributor is carrying, or

(ii) to receive a signal for the channel(s) such that the on-screen representations directing the viewer to such of BiB's digital interactive television services and/or BSkyB's enhanced movies and/or sports television services as the distributor is not carrying may not be viewed by means of, at the distributor's option, either:

(a) (where delivery of the channel is by satellite) a signal which includes the on-screen representations within a part of the signal which is transmitted separately from the main television picture; or

(b) (where delivery of the channel is by landline) a signal which does not include the on-screen representations or, at the distributor's option, includes them within a part of the signal which is transmitted separately from the main television picture(172); or

such other means as is agreed by the parties. This is subject in any such case to the distributor bearing any costs incurred in the development and ongoing provision of any such solution, including, where relevant, the costs relating to the installation, operation and maintenance of a landline and any related equipment necessary to provide the feed by landline.

Condition No 4: (Divestiture of cable)

A. BT shall not buy or seek any broadband cable television franchises in the United Kingdom beyond its existing holdings, and shall dispose of any such franchises acquired in the course of any other transaction. This undertaking shall however not restrict BT from providing broadcast services (should BT be permitted to do so in the future), broadband services or broadband interactive services (including for the avoidance of doubt in competition with the franchises in Westminster and Milton Keynes) over its own networks.

B. With effect from the date of this Decision (the "Exemption Decision") to divest itself of its broadband cable television franchises in Westminster and Milton Keynes (together "the Businesses") on the following basis:

(i) BT shall use its best efforts to arrange for the sale of the Businesses, at fair market value, within [...](173) months of the Exemption Decision;

(ii) BT shall maintain the Businesses in legally separate entities and shall operate them in a manner which enables it to maintain, as far as possible, their viability, marketability and value pending sale and final disposal;

(iii) prior to the sale of the Businesses, BT shall separately manage and hold separate the Businesses from the other businesses of BT in the United Kingdom Structural changes to the Businesses, until the date of such sale, shall not be undertaken by BT until after BT shall have informed the Commission of any such proposed change and the Commission shall not have explicitly opposed such proposed additional change in writing within two weeks of receiving BT's notice of change;

(iv) BT shall, as soon as reasonably practicable after receipt of the Commission's Decision, submit to the Commission a list of three nominations of accountancy firms, investment banks or similar undertakings. One such firm or bank or other body shall be appointed, subject to the approval of the Commission, as an independent expert. Such expert shall, if the Commission so requests, report to the Commission on whether or not BT is complying with subparagraph (iii).

C. If the Businesses have not been sold within the deadline set out in subparagraph B(i), BT shall appoint, subject to the approval of the Commission, a trustee in relation to the Businesses (such trustee may be the expert appointed in accordance with subparagraph B(iv) above). The terms of appointment shall be such that the trustee shall use his best efforts to sell the Businesses at fair market value within [...](174) months of the Exemption Decision or on such other terms as may be agreed between BT and the Commission.

D. If the trustee has not sold the Businesses in accordance with paragraph C, the trustee shall be obliged to sell the Businesses for the best possible price they are reasonably able to obtain within [...](175) months of the Exemption Decision. (The remaining terms and conditions of the trustee's appointment shall continue to apply.)

E. BT or, where relevant, the trustee shall notify the Commission in writing of the identity of the proposed purchaser of the Business. If, within ten working days of receipt of such notification the Commission has not informed BT or the trustee in writing to the contrary, the proposed purchaser shall be deemed to be acceptable to the Commission.

Condition No 5: (Veto rights)

A. BSkyB will vote in favour of any resolution of BiB to authorise its subsidiary which is responsible for promotional activities by means of marketing contributions for the subsidisation of set-top boxes ("McCo.") to provide marketing contributions or similar financial contributions in respect of sales of digital interactive set-top boxes where such resolution, where relevant including the proposed means of financing and any other consequent changes, has been recommended by the Chief Executive Officer of BiB and unanimously agreed to by the other BiB partners.

B. This condition will apply subject to the following criteria being met:

(i) the relevant digital set-top boxes are capable of receiving and running all of BiB's interactive services either in Open TV or reauthored format;

(ii) the operator(s) to whom it is proposed to provide marketing contributions or similar financial contributions in respect of sales of digital interactive set-top boxes have undertaken to make capacity available for BiB's interactive services for a period equivalent to that for which BiB has secured transponder capacity;

(iii) in the event that each of the three other BiB shareholders has a commercial interest in such a proposal (independently of their respective interest in BiB), BiB's auditors providing an opinion that the proposal is not, when taken as a whole, significantly less favourable than the provision of marketing contributions in respect of sales of BiB boxes set out in the BiB Business Plan. The auditor may take into account all factors which appear to the auditor to be relevant, including the balance of risk and reward to be derived from such proposal as compared to that to be derived from the provision of marketing contributions in respect of BiB boxes;

(iv) the proposal (a) does not require BSkyB to commit funding to BiB or McCo. in addition to that which it has already committed pursuant to the JVA; (b) is not funded through revenues which would otherwise be available for distribution to BSkyB as distributable profits; and (c) does not result in BSkyB losing joint control of BiB, in the event that the other shareholders commit additional funding to BiB and BSkyB does not; and

(v) the proposal does not reduce the funds contemplated as available within the agreed business plan for use as marketing contributions towards DTH digital interactive set-top boxes.

Condition No 6: (Conditional access and Simulcrypt)

A. BSkyB and Sky Subscribers Services Limited ("SSSL") confirm that SSSL will offer to develop and to operate Simulcrypt arrangements with all conditional access providers who administer access to non-SSSL digital television decoders in the United Kingdom. This offer to develop and operate Simulcrypt arrangements will remain open for the duration of the exemption.

B. SSSL will (and BSkyB will procure that it will) confirm in writing its offer to develop Simulcrypt arrangements within 21 days of a written request from a conditional access provider made in the required manner.

C. SSSL will (and BSkyB will procure that it will) use all reasonable endeavours to procure that Simulcrypt arrangements are operational within 12 months of the relevant request or within such other timescale as is agreed between the parties and to this end BSkyB and SSSL will cooperate fully with the conditional access provider (and its technology provider, if different).

D. In the event that BSkyB/SSSL is unable to meet these deadlines, a reasoned request for an extension must be submitted to OFTEL at least one month before the expiry of the deadline, which extension must be granted unless the inability to comply with such time frame is due primarily or exclusively to culpability on the part of BSkyB or SSSL. OFTEL will inform in writing the Commission of its reasons to accept or reject the request for the extension at least two weeks before adopting its decision. If the Commission does not object to OFTEL's proposal within a period of two weeks, it will be understood that the Commission accepts this proposal.

E. This condition is subject to:

(i) the conditional access provider who wishes to operate a Simulcrypt arrangement (and its technology provider, if different) cooperating fully with SSSL, and if appropriate, SSSL's technology provider, News Digital systems Limited (NDS), in developing a Simulcrypt arrangement between the NDS technology administered by SSSL and the conditional access system employed by the conditional access provider and agreeing fair and reasonable commercial terms for such development;

(ii) the conditional access provider agreeing with SSSL fair and reasonable commercial terms for ongoing arrangements relating to the operation of the Simulcrypt arrangement, including, without limitation, arrangements for the cross carriage of necessary data; and

(iii) the security of the conditional access provider's system not being compromised such that it creates a threat to the security of the system used by SSSL.

Condition No 7: (Subsidy recovery)

A. The BiB Parties confirm that McCo. will carry out its activities in the United Kingdom for the recovery of marketing contributions under arrangements with SSSL and, as relevant, other conditional access and access control providers each of which is, or will at the relevant time be, subject to the British regime.

B. The recovery of marketing contributions by McCo. shall be permitted provided that the following conditions shall apply:

(i) recovery in respect of marketing contributions will be made via:

(a) charges to customers for broadcast conditional access services (including BSkyB); and

(b) charges to customers for access control services (including BiB's subsidiary which carries out the business of an interactive service platform operator "Services Co.")and such charges will be made on a fair, reasonable and non-discriminatory basis;

(ii) the subsidy recovery element of any conditional access and access control charges will be based on a charge per card entitled (conditional access) or per authentication (access control) basis which may vary over time provided that:

(a) different charges may be made for different classes of conditional access and access control usage, so long as such differentiation does not distort, prevent or restrict competition within or between members of any of the following classes of purchasers of conditional access or access control services or between such classes: broadcasters, retailers of broadcast services, BiB Services Co. and its competitors, competitors to BiB Services Co. inter se, and any other class of purchasers of conditional access or access control services which may from time to time emerge;

(b) different options taking account of bulk purchases of conditional access and/or access control services may be offered on a non-discriminatory basis;

(iii) recovery will be made:

(a) in accordance with a scheme (or schemes) allocating recovery charges on an objective basis between customers for broadcast conditional access services and customers for access control services on each of which the Director-General for Telecommunications has:

- been consulted, and

- had prior notice of at least 30 days of the form of the scheme which is put into practice, and

- raised no objection to that form of scheme being put into practice

or

(b) as otherwise required by the Director-General for Telecommunications from time to time, or

(c) as determined in the resolution of any dispute:

- by a court of competent jurisdiction, or

- by a competent national authority, or

- by a procedure contemplated by Directive 95/47/EC or the British regime or any other relevant national legislation or regulation implementing the same or any relevant national legislation or regulation governing the provision of access control services, or

- under an appropriate and independent arbitration procedure which the BiB Parties will procure is made available to third parties.

C. Compliance with this condition shall be presumed where the BiB Parties have operated in accordance with the British regime.

D. References in this condition to the Director-General for Telecommunications shall be read as references to such regulator or regulatory body as from time to time is entrusted with the regulation of the British regime.

Condition No 8: (Provision of information by McCo.)

A. The BiB Parties shall procure that McCo. shall not in any way discriminate between BiB Services Co. and any other interested party in connection with:

(i) the dissemination of technical information within its responsibility;

(ii) the dissemination of changes to technical information within its responsibility which would affect the ability of interested parties to utilise the features of BiB for such purpose.

B. Where a company within the BiB Group receives a request in the required manner from an interested Party which is not within its responsibility but is within the responsibility of another party, it will provide within ten working days the name and address of each person whom it believes could supply such technical information and forward the request to such person or persons.

Condition No 9: (Provision of information by BSkyB)

BSkyB shall take the following steps in relation to the dissemination of technical information regarding the functional features of BiB boxes:

(a) within ten working days of the date or receipt of a request made in the required manner from an interested party, BSkyB or SSSL will make available to such interested party a non-disclosure agreement;

(b) within ten working days of the date of receipt in the required manner of a non-disclosure agreement executed by such interested party, BSkyB will make available to such interested party a list of technical information, which shall specify any item which requires the execution of a supplemental technical agreement, should such party wish to have access to it;

(c) within ten working days of the date of receipt of a request made in the required manner, BSkyB will make available copies of any item of technical information requested by any interested party who has received a list of technical information in accordance with the provision of paragraph (b) above. Where access to a particular item requires execution of a supplemental technical agreement, time shall run from the date of receipt in the required manner of the relevant executed supplemental technical agreement, which shall be made available to the interested party within ten working days of the relevant request;

(d) BSkyB will advise affected parties if the BiB box specification changes immediately after it advises manufacturers of BiB boxes;

(e) BSkyB will advise affected parties of any functional change:

(i) as regards the intention to introduce such functional change, immediately after completion of the technical specification and before testing together with an estimate of the time at which the change will be implemented;

(ii) as regards any alterations to the intentions and estimated timings referred to above, immediately after deciding to make such alterations;

provided that if any information falling within the first exclusion in the definition of functional change is information which will affect the ability of affected parties to deliver broadcast and/or interactive services through BiB boxes such information will be advised to them as soon as reasonably practicable;

(f) BSkyB shall procure that SSSL complies with the provisions of paragraphs (a) to (e) with regard to technical information within its sphere of responsibility;

(g) where BSkyB or any member of the BSkyB Group receives a request in the required manner from an interested party for technical information which is not within its responsibility, but is within the responsibility of another party, it will provide within ten working days the name and address of each person whom it believes could supply such technical information and forward the request to such person or persons.

Condition No 10: (Anti-avoidance)

A. The BiB parties will ensure that no other member of the BiB Group does anything which would, if carried out by McCo., be a breach of the requirements set out in Conditions Nos 2(A), 7 and 8 or which has the effect of avoiding the effect of any such requirement.

B. Breaches of the abovementioned requirements shall not be a breach of this condition unless they would have been a breach of a condition set out in any of Conditions Nos 2, 7 and 8.

Article 3

Breaches of Conditions Nos 7, 8 and 9 set out in Article 2 or, where relevant, breaches of the British regime shall not be considered an infringement of those conditions unless, in relation to the achievement overall of the objects of those conditions:

(a) such breaches have been clear and serious; or

(b) such breaches have had serious and material adverse affects on a third party; or

(c) such breaches have resulted in irreparable and serious damage to a third party; or

(d) although the individual breaches are minor, there have been several breaches demonstrating a persistent failure properly to comply, provided that, if a breach is shown to exist in a contractual term used in more than one contract or in a commonly used commercial practice, only one breach shall be considered to have occurred, irrespective of the number of such contracts or examples of such practice; or

(e) where such breaches relate to interested parties who are currently providing services using BiB boxes, the breaches have been of long duration, no regard being made to the duration of any dispute resolution procedure, and provided that in the case of a breach shown to exist in a contractual term, time shall run for the purpose of this indent only when the circumstances to which the term relates have arisen and for so long as they continue.

Article 4

For the purpose of the conditions set out in Article 2, the terms used shall be construed in accordance with the definitions set out in Annex II to this Decision.

Article 5

This Decision is addressed to:

BT Holdings Limited Newgate Street London EC1A 7AJ United Kingdom

British Sky Broadcasting Limited Grant Way Isleworth Middlesex TW7 5QD United Kingdom

Midland Bank plc 27-32 Poultry PO Box 648 London EC2P 2BX United Kingdom

Matsushita Electric Europe (Headquarters) Limited Furzeground Way

Stockley Park

Uxbridge Middlesex UB11 1DD United Kingdom

Done at Brussels, 15 September 1999.

For the Commission

Karel VAN MIERT

Member of the Commission

(1) OJ 13, 21.2.1962, pp. 204 to 62.

(2) OJ L148, 15.6.1999, p. 5.

(3) OJ C 322, 21.10.1998, p. 6.

(4) A low-noise block converter (LNB) detects the signal relayed from the feed, converts it to an electrical current, amplifies it and lowers its frequency.

(5) The parties use this term to describe access to a limited amount of Internet content.

(6) However, commercial trials in limited areas are underway.

(7) See Commission Notice on the definition of the relevant market for the purposes of Community competition law, (OJ C 372, 9.12.1997, p. 5).

(8) In its judgment of 26 November 1998, in Case C-7/97, Oscar Bronner GmbH Co. KG v Mediaprint [1998] ECR I-7791, the Court of Justice repeated the formula (paragraph 33) that "the market for the product or service in question comprises all the products or services which in view of their characteristics are particularly suited to satisfy constant needs and are only to a limited extent interchangeable with other products or services (Case 31/80 L'Oréal v De Nieuwe AMCK [1980] ECR 3775, paragraph 25; Case C-62/86 AKZO v Commission [1991] ECR I-3359, paragraph 51)".

(9) An operator explained that "what seems clear ... is that shopping is not a sufficient stand alone reason for customers to want to invest in the equipment for such services. The offer must be part of a larger offer, including entertainment and education, which again favours the BSkyB based channel as it is part of the wider digital relaunch of the network".

(10) Binary Compass Enterprises Report, 1997, by David Reibstein and Sunil Gupta "The online retail commerce report" rated price competition fourth in what was important to customers.

(11) The parties' statements coincide with independent analysis. See "Regulating Communications: approaching convergence in the Information age" July 1998, policy document of British Departments of Trade and Industry and of Culture, Media and Sport at paragraphs 1.13-1.15: "Traditional television and radio are likely to retain their strong and distinctive position because of their ubiquity, familiarity, low cost and ease of use. The environments of the living room (the traditional place for the TV) and the work room (the home of the PC) are generally quite distinct." Furthermore, BiB will offer limited internet access via TV sets.

(12) "We see BiB and the current Internet offers as being differing customer groups, rather than two ways to reach the same group". "mass market development on on-line retail requires a TV interface rather than a PC/internet channel which we see as being relatively limited for mass market apparel". "PC and TV delivered services are 'complementary''".

(13) This distinction is similar to the one made in the advertising markets in that different distribution mechanisms reach different target audiences. See Commission Decision 96/346/EC (IV/M.553-RTL-Veronica-Endemol) (OJ L 134, 5.6.1996, p. 32, in particular recital 23).

(14) See Commission Decision 94/922/EC (IV/M.469-MSG Media Service) (OJ L 364, 31.12.1994, p. 1, recital 38).

(15) See MSG Media Service, at paragraphs 32 and 33; Commission Decision 1999/153/EC (IV/M993-Bertelsmann/Kirch/Premiere) (OJ L 53, 27.2.1999, p. 1, recital 18); Commission Decision 1999/242/EC (IV/36.237-TPS) (OJ L 90, 2.4.1999, p. 6).

(16) Bertelsmann/Kirch/Premiere, recital 18 and TPS.

(17) In terms of premium film and sports channels, BSkyB's channels are available via both satellite and cable. Differences in the composition of the basic packages of service are not significant.

(18) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.

(19) "Churn rate" represents the average number of customers who stop their subscription to a pay-television service over a given period of time.

(20) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.

(21) See Bertelsmann/Kirch/Premiere Decision, in particular recitals 34 and 48.

(22) BSkyB annual report 1997, page 3. See also conclusion in the The Director-General's Review of BSkyB's Position in the Wholesale Pay-TV Market, December 1996, point 2.18: "We concluded that premium sports and movie channels were the main drivers of subscription to pay-TV. Without rights to high quality sports and/or movies there seems no way that competing broadcasters would be able to enter the market at the premium level".

(23) In the United Kingdom in 1995, 44 of the top 50 satellite pay television programmes in terms of audience ratings were either films or sports. Sports programmes accounted for 27 of the top 50 programmes, films for 17 and other programmes for 6. Football alone accounted for 22 of the top 50 programmes, amongst which 14 of the top 20. Source: Cable and Satellite Express, 25 January 1996. The four top programmes ever on cable and satellite television in the United Kingdom were all sports programmes: the top programme was a football match, number two a boxing match, followed by two football matches. Source: New Media Markets, 21 March 1996. In the United Kingdom in 1997, 42 of the top 50 pay-television programmes available on cable and satellite were either films or sports. The top 10 programmes were all films or sports; films accounted for 26 of the top 50 programmes; and sports for 16. Source: Cable and satellite Express, 29 January 1998.

(24) [...](25)(25) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk..

(26) See Commission Decision of 3 December 1998 (Case No IV/M.1327 - NC/Canal+/CDPQ/BankAmerica) (OJ C 233, 14.8.1999, p. 51).

(27) The British Office of Fair Trading concluded that films and sports each constitute separate wholesale programming supply markets for pay-television, in The Director-General's Review of BSkyB's Position in the Wholesale Pay-TV Market, December 1996.

(28) See for example, Bertelsmann/Kirch/Premiere, paragraphs 19, 20 and 21.

(29) Conditional access is the means by which only viewers who are authorised to watch a service are able to do so.

(30) Subscriber management services are necessary in order to collect subscriptions from viewers. This involves maintenance of information on subscribers so that they may be authorised and billed for the services which they view.

(31) An electronic programme guide (EPG) is a navigation system which lists channels and services and via which viewers are able to tune to different data signals, and thus to change channels or services.

(32) An application programming interface (API) allows applications to be written to run on a set-top box. In order to write applications compatible with the API embedded in a particular set-top box, authoring tools are also necessary.

(33) See Joint Oftel and DTI Notice and Consultation - July 1997, Chapter 3, paragraph 25: "There can be very different supply and demand conditions surrounding the different (technical) services so that in principle they could be represented as separate product markets. However, in practice it is likely to be possible to exploit economies of scope (and possibly scale) in the SMS, SAS and customer management functions. There is also likely to be a close association between a particular encryption technology and the organisation of these associated administration services."

(34) See MSG Media Service, recital (31)(f).

(35) MSG Media Service (OJ L 364, 31.12.1994); Bertelsmann/Kirch/Premiere.

(36) OJ L 281, 23.11.1995, p. 51.

(37) SI 1996/3151 - The Advanced Television Services Regulations 1996 - implements most of the provisions of the Directive. It came into force on 7 January 1997. The statutory instrument has been supplemented by guidelines from Oftel - the UK regulatory body charged with enforcing the statutory instrument - "Digital Television and Interactive Services/Ensuring access on fair, reasonable and non-discriminatory terms. A statement issued by the Director-General for Telecommunications. Pricing of conditional access and access control services/Oftel Guidelines April 1999". Article 2 (save the last paragraph) of the Directive dealing with transmission signals is implemented for broadcasters other than the BBC by Section 142 of the Broadcasting Act 1996, and regulated by the Independent Television Commission (ITC).

(38) Telecommunications Class Licence, as revoked and re-issued on 31 December 1997, pursuant to section 7 of the Telecommunications Act 1984.

(39) A licensee found to be acting in a manner which impedes fair and effective competition is liable to directions and/or sanctions as set out in the Broadcasting Acts of 1990 and 1996, including the imposition of financial penalties and the revocation of its licence.

(40) ITC Code of Conduct on Electronic Programming Guides of 13 June 1997.

(41) The Guidelines list instances where Oftel believes that competitive neutrality would not be achieved. These include vertically integrated EPG providers that favour their own or connected television service by granting special terms of access, by the design of the EPG and/or by the listing of the television services provided.

(42) Oftel Guidelines: The Regulation of Conditional Access for Digital Television Services of 3 April 1997. Section 6. Electronic Programming Guides.

(43) Limited trials are under way.

(44) For example, Microsoft's Web TV has announced trials of its service combining internet access with some of its own content. The three largest cable operators in the United Kingdom, Cable & Wireless, Telewest and NTL, also have plans to launch television-delivered services similar to that of BiB, although their plans also include provision of full access to the Internet from television sets. It is not yet clear whether interactive services will be offered via digital terrestrial television in the United Kingdom.

(45) Limit set by the Broadcasting Act 1996.

(46) In fact, the total number of subscribers to such satellite niche pay-television channels is less than 5 % of the number of subscribers to BSkyB's satellite pay-television service.

(47) BSkyB wholly-owned basic channels are: Sky 1, Sky News, Sky Sports News (launched in 1998), Sky Travel, Sky Soap and ".tv" (re-named in 1998, previously The Computer Channel). Source: BSkyB Group plc 1998 annual report.

(48) BSkyB wholly-owned premium channels are: Sky Premier, Sky Moviemax, Sky Cinema (re-launched in 1998, previously known as The Movie Channel, Sky Movies and Sky Movies Gold), Sky Sports 1, 2 and 3. Source: BSkyB Group plc 1998 annual report.

(49) Joint venture basic channels are: Nickelodeon (50 %), QVC (20 %), The Paramount Comedy Channel (25 %), Granada Plus, Granada Men and Motors and Granada Breeze (re-named in 1998, previously Granada Good Life) (all 49,5 %), The History Channel (50 %), National Geographic Channel (50 %) and Music Choice (49 %). Joint venture premium channels: Playboy TV UK (30 %) and MUTV (Manchester United TV) (33,3 %). Source: BSkyB Group plc 1998 annual report.

(50) Basic channels are supplied in the form of a package of channels. The customer cannot choose to subscribe to the individual channels comprised in the package, but must subscribe to the package as a whole. Premium channels are primarily films and sports channels, and are only available to customers who subscribe to basic services.

(51) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.

(52) Financial Times New Media Markets, 17 September 1998, page 9.

(53) Independent Television Commission News Release (82/98) of 16 September 1998.

(54) The number of homes passed by cable increased by 3 % in the quarter to 1 July 1998, as opposed to 17 % over the previous nine months. Source: Cable Europe Volume 8, Issue 20, September 30, 1998.

(55) Operated by a consortium of cable operators, including Telewest and NTL.

(56) Financial Times New Media Markets, 17 September 1998, page 9.

(57) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.

(58) It should also be noted that there are commercial subscribers to pay-television in addition to domestic subscribers. Commercial subscribers are typically hotels or pubs. Commercial subscribers are interested essentially in either premium film or premium sports channels. They do not normally subscribe to basic channels. By the end of June 1998, there was a total of [...]* commercial subscribers in the United Kingdom. Some [...]* of these subscribe directly to BSkyB's satellite pay-television service. The remainder subscribe to BSkyB's premium film and/or sports channels via a cable operator.

(59) There were some [...]* million such subscribers at this date. This figure reflects the addition of the total number of subscribers to BSkyB's satellite pay-television and the total number of subscribers to all cable pay-television operators. It does not take account of subscribers to "niche" satellite pay-television channels. There are no figures available to clarify whether subscribers to such channels are also subscribers to BSkyB's service. If "niche" subscribers were included, there would therefore be a risk of double counting. Source: BSkyB, response to request for information of 30 October 1998. The total number of domestic television households was 23,86 million: Source: Barb, quoted in New Media Markets, Volume 16, Number 33, 17 September 1998.

(60) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.

(61) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.

(62) Subscribers to BSkyB at the end of June 1998, [...]* million: source BSkyB, response to request for information of 9 November 1998. Subscribers to cable operators at the end of June 1998, [...]* million.

(63) In respect of the same period, i.e. at the end of June 1998.

(64) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.

(65) Independent Television Commission News Release (82/98) of 16 September 1998.

(66) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.

(67) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.

(68) BSkyB has not provided figures which distinguish between the various cable operators.

(69) Independent Television Commission News Release (82/98) of 16 September 1998.

(70) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.

(71) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.

(72) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.

(73) Bertelsmann/Kirch/Premiere, in particular recitals 34,48 and 49.

(74) "BSkyB had long term rights contracts with the major Hollywood studios and with the larger independents which gave BSkyB Pay-TV rights to over 90 % of first run major films" Paragraph 1.7 of "The Director-General's Review of BSkyB's position in the wholesale Pay-TV market", December 1996.

(75) The Director-General's Review of BSkyB's Position in the Wholesale Pay-TV Market, December 1996, point 1.2.

(76) The Director-General's Review of BSkyB's Position in the Wholesale Pay-TV Market, December 1996, point 2.19.

(77) Informal undertakings published in OFT press release No. 32/96 of 24 July 1996 and at appendix A to The Director-General's Review of BSkyB's Position in the Wholesale Pay-TV Market, December 1996.

(78) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.

(79) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.

(80) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.

(81) Sometimes referred to as "first run" or "first release" rights.

(82) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.

(83) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.

(84) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.

(85) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.

(86) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.

(87) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.

(88) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.

(89) This has been recognised by independent analysts. See for example, page 23 of the Nat West Markets analysis of Digital Broadcasting "Looking for Direction - UK Media Sector" October 1997: "... the fact is that BSkyB's movie contracts remain in place through the first three years of its transition to digital. There is simply no route to market for aspiring competitors in the initial stages of the development of digital services". In fact, these contracts remain in place for some six years.

(90) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.

(91) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.

(92) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.

(93) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.

(94) [...](95)(95) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.

% of BSkyB's expenditure on programmes is accounted for by films and sports.

(96) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.

(97) Sky Subscribers Services Ltd (SSSL) and Satellite Encryption Services Ltd (SESL) are both wholly-owned subsidiaries of BSkyB Ltd. SSSL provides analogue conditional access and subscriber management services to BSkyB Ltd. SESL provides the same services to third party satellite direct-to-home pay-television broadcasters using ASTRA transponders. Sky In-Home Services Limited (SIHSL, formerly Tele-Aerials Satellite Limited) is also a wholly-owned subsidiary. SIHSL is involved in the sale and installation of analogue and digital satellite dishes.

(98) BSkyB Group has a similar exclusive licence in respect of its analogue conditional access system, VideoCrypt.

(99) Form A/B, p. 51.

(100) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.

(101) Bertelsmann/Kirch/Premiere, in particular at recital 108.

(102) For the period January to March 1998. Source: Oftel Market Information Update, November 1998.

(103) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.

(104) Below this 10 % threshold, a shareholder loses the right to Board representation and joint control.

(105) Although the parties have indicated that they intend to enter negotiations with a view to making the BiB service available alongside the digital broadcast entertainment services transmitted on digital terrestrial and digital cable in the United Kingdom.

(106) Condition No 6 of this Decision.

(107) Formerly known as Thomson Sun Interactive.

(108) The JVA originally provided that BiB would also subsidise the costs of installation of the box and installation or upgrade of a digital satellite dish in the consumer's home. However, subsidisation of installation costs was removed from the business scope of BiB in the agreements signed on 4 August 1998.

(109) BiB's service will generally be available free to customers with the exception of down-loading of games, learning on-line and limited Internet access for which a separate fee may be charged.

(110) Condition No 7 of this Decision.

(111) Clause 20.4 of JVA.

(112) However, BSkyB may promote any other set-top box where the purpose of such promotion relates to the use of such boxes in homes which already have a BiB subsidised set-top box.

(113) Pages 47 and 49 of Form A/B.

(114) Clause 19 of JVA.

(115) Clause 19 of JVA.

(116) Clause 20 of JVA.

(117) Clause 17 of JVA.

(118) Clause 18 of JVA.

(119) Clause 8 of JVA.

(120) OJ C 259, 26.8.1997, p. 3.

(121) Clause 2.2 of JVA.

(122) Marketing Contributions Co - "McCo".

(123) Platform Co.

(124) Clause 2.2 of JVA.

(125) Marketing Contributions Services Agreement between McCo and BSkyB of 4 August 1998.

(126) Customers are not charged for this service, nor are they required to make any deposits on such an account.

(127) And as if the reference to the "primary duty" therein were references to the duty to provide Access Control Services pursuant to the British Regime and references to "technical services" were to technical services within the said meaning of Access Control Services.

(128) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.

(129) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.

(130) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.

(131) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.

(132) Terms approved by the Director-General for Telecommunications will be presumed to be fair and reasonable.

(133) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.

(134) "All-or-nothing" option in the Article 19(3) Notice.

(135) Source: Inside Cable & Telecoms Europe, http://www.inside-cable.co.uk, article of 14 December 1998, "Kingston first to commit to ADSL in Europe".

(136) Source: Inside Cable & Telecoms Europe, http://www.inside-cable.co.uk, article of 22 December 1998, "BT's ADSL Trails - More Details".

(137) Form A/B, at page 77.

(138) Clause 3.3 (A) of JVA, referred to at recital 119.

(139) ONdigital is subsidising the retail selling price of the digital set-top boxes necessary for its service.

(140) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.

(141) Response of 8 August 1997 on behalf of BiB parties to request for information of 25 July 1997.

(142) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.

(143) For example, the total investment in BiB is GBP [...](144)(144) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.

million (of which BSkyB is in any event contributing [...](145)(145) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.

%). The peak annual cost of running the BiB services is GBP [...](146)(146) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.

million (in [...](147)(147) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.,

of which approximately [...](148)(148) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.

is attributable to subsidisation of the set-top box.

(149) Clause 3.3 (A) of JVA.

(150) Clause 17 of JVA.

(151) Clause 20 of JVA.

(152) Clause 19 of JVA.

(153) See for example, Case 42/84 Remia v Commission [1985] ECR 2545.

(154) "Over time it could be expected that some or all of [the] barriers to internationalising the service would decline. It is entirely feasible to envisage BiB and other transactional platform providers in different Member States developing in the medium term and expanding into other Member States." (Form A/B, at page 49).

(155) Cases 6 and 7/73 Commercial Solvents v Commission [1974] ECR 223 at paragraphs 30 to 35.

(156) Form A/B, at page 32.

(157) See Commission Decision 98/536/EEC (Case IV/31.734: Film purchased by German television stations) (OJ L 284, 3.10.1989, p. 36, at recital 49); Decision 90/25/EEC (Case IV/32.265 - Concordato Incendio) (OJ L 15, 19.1.1990, p. 25, at recital 25).

(158) NTL is testing the service of Yes Television on its cable network in Cardiff until Summer 1999. Research is being carried out on the possibilities of a full-scale launch. Yes Television offers entertainment and music on demand, along with news and information services, travel services, educational services and home shopping. Source: Inside Cable & Telecoms Europe, http://www.inside-cable.co.uk, article of 11 January 1999, "Cardiff gets UK's first interactive TV".

(159) In this respect the parties' revised business plan provided to the Commission on 12 August 1997 is illuminating. It was based on the assumption that little competition would emerge on the digital interactive television services market: "BiB is the sole provider of digital television interactive services, as defined in the joint venture agreement, to both BSkyB subscribers and to [...](160)(160) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.

% of cable subscribers".

(161) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.

(162) See Bertelsmann/Kirch/Premiere, at recital 56.

(163) Clause 2 of the JVA.

(164) The parties have raised with the Commission as a possible means of complying with this condition the use of a website, parts or all of which may be password protected, for the provision of the non-disclosure agreement and/or the supplemental technical agreement and/or the technical information. The Commission considers that this is one of the ways in which the parties could fulfil this condition. However, the choice of mechanism is a matter appropriately left to the parties.

(165) Both cable operators and ONdigital use different set-top boxes and interactive technology to BSkyB/BiB. Evidence provided by BSkyB and third parties indicated that although it would be possible in theory to re-author in real-time the interactive elements in BSkyB's film and sports channels so that they would function with these different technologies, doing so would have cost and timing implications for the competing cable and/or digital terrestrial operators, making this option at best significantly less attractive, and at worst impossible.

(166) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.

(167) NTL and Telewest operate the Front Row pay-per-view service which is independent of BSkyB.

(168) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.

(169) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.

(170) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.

(171) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.

(172) BSkyB shall have the right to refuse a request for delivery by landline only where this is approved by a suitable British regulator.

(173) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.

(174) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.

(175) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.

Schedules & Appendices

ANNEX I

List of notified agreements and chronology of their provision to Commission

1. In the notification the parties referred to a number of different agreements, not all of which were supplied with the notification. In response to a request for clarification from the Commission, the parties stated in a letter of 6 August 1997 that the following 16 agreements were notified:

1. The joint venture agreement and its annexes

2. EPG content design, look and feel

3. Start-up costs

4. Business plan and annual operating plan and budget

5. Agreed form completion board/extraordinary general meeting resolutions

6. Agreed form taste and ethics policy

7. Memorandum and Articles of Association

8. Box specification

9. Transponder capacity term sheet

10. Marketing services agreement

11. Technology transfer and licensing agreement

12. Content provider terms

13. Initial commitments agreement

14. Digital terrestrial television commitments - deleted in agreements of 4 August 1998

15. Subordinated loan agreement

16. Funding loan agreement.

2. By letter of 30 March 1998, the parties provided the Commission with final drafts of 3 more agreements, dated 27 March 1998, which they requested form part of the notification:

1. Transaction management system agreements, (between BiB and Midland)

2. Merchant acquiring agreement (between BiB and Midland)

3. Mondex agreements (between BiB and Midland).

3. By letter of 14 July 1998, the parties provided the Commission with a revised draft of the joint venture agreement itself, dated 6 May 1998, without its annexes. Some of the amendments were made to address the Commission's concerns.

4. By letter of 25 September 1998, the parties provided the Commission with copies of the joint venture agreement and its annexes which were completed by the parties on 4 August 1998. The digital terrestrial television commitments agreement (referred to above at point 14) was deleted from the completed agreements, while the marketing services agreement (referred to above at point 10) was subdivided into two separate agreements: the marketing contributions services agreement and the advertising and promotional services agreement. Two new agreements were signed, namely a loan agreement and the marketing contributions recovery agreement.

5. An incorrect version of one of the completed agreements concerning the payment of subsidy was provided at that time. The correct version was provided to the Commission on 9 November 1998 in response to a request for information.

ANNEX II

"Affected party": means any interested party who is at the relevant time delivering broadcast and/or interactive services through BiB boxes (or who is committed to do so and is preparing to commence such services) and who has current non-disclosure agreement.

"Another party": means another member of the BSkyB Group, a member of the BiB Group, a BiB Party or a third party.

"BiB box" or "BiB boxes" means digital interactive set-top boxes sold with the benefit of marketing contributions provided by BiB.

"BiB box specification": means British Sky Broadcasting STB Specification Issue 3.00 of 30 July 1997, British Sky Broadcasting STB Specification V3.0 Errata V5.0 and British Sky Broadcasting STB Technical Guidelines Version V1.2 of 23 October 1997 as updated and amended from time to time.

"BSkyB Group": means British Sky Broadcasting Group plc.

"Conditional access provider": means a person who is licensed to provide conditional access services pursuant to the class licence granted by the Secretary of State on 7 January 1997 under Section 7 of the Telecommunications Act 1984 for the running of telecommunications systems for the provision of conditional access services.

"Functional change": means information which is intended to be implemented to become technical information and which comprises software intended to be downloaded into BiB boxes for the delivery of broadcast and/or interactive services, but excluding:

- downloads to address problems affecting the operation of software already in BiB boxes,

- downloads related to security of BiB boxes or to the security of any conditional access system or access control system utilised for broadcasts and/or interactive services accessible through BiB boxes.

"Interested partiy": means any broadcaster, cable operator, telecommunications operator, digital terrestrial television platform operator or satellite direct to home platform operator, whether for broadcast only or for interactive services or for any combination thereof, including BiB Services Co.

"Marketing contributions": means the subsidy which BiB will provide for BiB boxes, as set out in Clause 16 of the JVA and the marketing services agreement.

"Non-disclosure agreement": means the standard form confidentiality agreement, which BSkyB or SSSL may require an interested party to enter into before making available a list of technical information to that interested party and which must be current in the event that an affected party or an interested party is to have access to any information the subject of Condition No 9.

"Non-SSSL digital television decoders": means decoders which do not contain the conditional access technology employed by SSSL.

"Purpose": means, in respect of any interested party, the purpose of utilising the features of BiB boxes to deliver broadcast services, whether or not interactive, through BiB boxes and no other purpose.

"Request": means a written request for any item or items of technical information or for a list of technical information in either case for the purpose.

"Required manner": means in respect of any request or other communication by an interested party or conditional access provider:

- to BSkyB: a registered letter sent to BSkyB's registered office addressed to the head of regulatory affairs,

- to BiB: a registered letter sent to BiB's registered office addressed to the compliance officer.

"Simulcrypt": means the use of the European common scrambling algorithm in two populations of digital television decoders, each population containing a different conditional access technology, in order to facilitate the ability of retailers of digital television services using either of such conditional access technologies to opt to offer their services to consumers via digital television decoders containing the other conditional access technology (subject to such other population of decoders containing the requisite level of functionality for the type of services proposed to be offered by such retailer) together with the associated synchronisation of the two technologies required to implement such process.

"Supplemental technical agreement": means any appropriate licensing agreement which BSkyB or SSSL may require in relation to the release of a specific item of technical information.

"Technical information": means information about the current functional technical characteristics of BiB boxes, including the BiB box specification, which is the subject of completed technical specifications in written and/or diagrammatic form, but excluding:

- information, including information in relation to proprietary technology, which it is essential for a conditional access services supplier or access control services supplier and/or any of its technology suppliers to maintain in strict confidence in order to protect the security and integrity of its systems, or of the conditional access services or access control services which it supplies or intends to supply and/or its ability to provide a secure and confidential service to each of its customers, and

- information which any member of the BiB Group, BSkyB or SSSL has a statutory duty or obligation under any regulatory licence binding upon it or SSSL to maintain in confidence, and

- information which any member of the BiB Group, BSkyB or SSSL is contractually bound to maintain in confidence and has no right to divulge to third parties, and

- information required exclusively for the purpose of manufacturing a box, and

- in respect of SSSL, any information which does not relate to the operational and functional aspects of BiB boxes, which arise from the design of the conditional access or access control system or from the design of the electronic programme guide,

and, for the avoidance of doubt, the above definition of technical information does not include creative information about the manner in which the functional technical characteristics of BiB boxes may be utilised for broadcasting and interactive applications.

"Transfer pricing guidelines": means the OECD transfer pricing guidelines for multinational enterprises and tax administrations, as updated from time to time.

"British regime": means the British regime for conditional access and access control services, which incorporates the British implementation of the relevant parts of Directive 95/47/EC of the European Parliament and of the Council, namely:

- the Advanced Television Services Regulations 1996 (as amended) (SI 1996 Nos 3151 and 3197), and

- the Conditional Access Services Class Licence granted on 7 January 1997 pursuant to Section 7 of the Telecommunications Act 1984, and

- the Telecommunications Class Licence ("TSL") as revoked and re-issued on 31 December 1997 pursuant to Section 7 of the Telecommunications Act 1984, and

- any re-enactment, re-issue or amendment of the above or any of them, provided that the reference in Condition No 15 to Regulation 11(4)-(8) of the Advanced Television Services Regulations 1996 is to that Regulation as in force at the date of publication of the Article 19(3) Notice/Decision.

By way of explanation, the British regime contains provisions for the resolution by the Director-General for Telecommunications of disputes in a number of ways.