Sky TV defiant over contracts
Sky TV remains on a potential collision course with the Commerce Commission.
The competition watchdog issued a warning to Sky TV earlier this month but Sky TV yesterday said it had done nothing illegal and it was "business as usual".
The commission believes Sky TV breached the Commerce Act by restricting TelstraClear's ability to launch a subscription TV service, before TelstraClear's acquisition by Vodafone last year.
TelstraClear resold Sky TV and "key commitment clauses" in its contract meant it needed Sky TV's permission to sell programming from other sources. Sky TV is believed to have similar clauses in its agreements with Vodafone, Telecom and CallPlus, which also bundle Sky TV with their phone and broadband plans.
The commission said the clauses were "in part" responsible for TelstraClear not pressing ahead with a subscription TV service. Commission chairman Mark Berry said it would be best if the clauses were deleted from Sky TV's contracts and the commission would take legal action if Sky TV chose to enforce them with others in future and the commission received a complaint.
But a Sky TV spokeswoman said: "We won't be removing these clauses and it is business as usual."
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