The Office of Fair Trading is to look into the satellite broadcaster's recent acquisition of Sir Alan's Amstrad business.
Sky bought the electronics company for £125 million earlier this month. Amstrad supplies around 30% of Sky's digiboxes, and the business makes up 75% of Amstrad's revenue.
The regulator is to assess whether such a deal will result in a "substantial lessening of competition" within the market.
If it deems necessary, the OFT can advise the Competition Commission to complete a full investigation into the deal, and could potentially block its progress.
The commission is currently assessing Sky's 17.9% stake in broadcaster ITV, following media regulator Ofcom and the OFT advising the deal raised competition and public interest concerns.
Why dont the OFT just leave Sky alone, its because of fookin competition regulators that the public keep losing out for fook sake!
Kwik Save has gone bust because the competition commission said Somerfield should not be allowed to buy all the stores... Myself and the millions of other football fans are now being asked to pay £120 a year to Setanta for a service we recieved for £50 a year from Sky due to their shitty football rights "concerns".
Sky can take their services to the next level by owning Amstrad as they will have the say in what products are developed for the future, atm they have to rely on the likes of Pace, Amstrad and Thomson to develop the products for them. So we Sky customers will lose out in the long run, yet again, thanks to competition shite.
I dont fookin see them getting involved when Tesco took over One Stop, or when they plan to move into an area with a Tesco Express and kill off all the small businesses!! Digital Spy Report