Ofcom rules in favour of Sky Sports in ads row as complaints fly between broadcaster and BT Sport

Competition and rhetoric from the two companies has intensified as BT prepares to launch its new BT Sport service, offering a direct rival to Sky Sports, which has previously dominated the sports TV market in the UK.

Group director of corporate affairs at Sky, Graham McWilliam, said: "We are pleased that Ofcom has confirmed that we are acting entirely reasonably in declining to advertise a direct competitor on Sky Sports. As we said at the time, BT's demands are a bit like Tesco expecting to advertise inside Sainsbury's."

Ofcom ruled that Sky was pursuing a legitimate commercial interest and that the broadcaster's approach was proportionate to its aim.

The decision from Sky in April to refuse to air ads for BT Sport on its sports channels prompted managing director of BT's retail division, John Petter, to accuse BSkyB of behaving like "a rottweiler running away from a new born puppy".

The companies have been battling for customers as BT Sport gets ready for an August launch, just ahead of the new football season, with deals from both ranging from free access to BT Sport for BT Broadband customers and cuts to Sky Broadband price packages to stick with Sky.

McWilliam went on to say the broadcaster was "not surprised" by the new complaint from BT.

"BT has reinforced its reputation as a serial complainant by returning to the regulator about the supply of Sky Sports 1 and 2 to the YouView platform. Our position here is just as reasonable as in advertising," he said.

"We are disappointed, but not surprised, that BT has again gone down the regulatory road rather than agree a commercial deal in customers’ interests. However, we consider its latest complaint, like those that have gone before, to be entirely without merit."

McWilliam added: "BT has itself been clear that it wants to be the exclusive seller of its own sports channels in order to shore up its broadband business. We simply want a level playing field whereby each company supplies its sports channels to the other so we can both offer our customers all Premier League football next season."

However, BT claims that the terms on which Sky Sports supplies its channels as an abuse of the broadcaster's market dominance.

"We are pleased Ofcom has decided to open an investigation as we believe Sky has behaved in an unreasonable and discriminatory manner," BT said.

"This is because they have refused to provide Sky Sports 1 and 2 to BT on YouView on fair terms whilst providing them to other pay-TV retailers such as TalkTalk."

The decision comes a week after Sky lodged a complaint with the Advertising Standards Authority (ASA) about BT's adverts for BT Sport, on the basis that BT's claim of providing "free" football coverage to broadband customers indicates no other costs are involved.