Sky TV fights for right to merge

Sky TV and Vodafone will go to the High Court to argue the Commerce Commission got it wrong when it said their merger might substantially lessen competition.

Sky released details on the companies plan to appeal the competition watchdog’s refusal in February to clear their merger.

Law firm Bell Gully, acting for Sky and Vodafone, said the regulator was wrong to think Vodafone’s rivals in the broadband and mobile markets might need access to Sky Sports to effectively compete against the merged firm.

The appeal claim said the commission misjudged a lot of incentives on the merged firm and failed to consider the prospects of the merged firm offering its programming to rival telecommunications providers on competitive terms.

The commission failed to place sufficient weight on the benefits of the proposed merger, including the possibility that the merger would help Sky and Vodafone develop new products and achieve ‘‘dynamic efficiencies’’, the companies claimed.

Sky and Vodafone have also alleged the commission made errors in law.

The companies will ask the High Court to reverse the commission’s decision to refuse clearance for their merger.

Spark spokesman Richard Llewellyn said its views on the merger had not changed.