European competition commissioner Mario Monti has drawn up a list of objections to BSkyB's planned £1.02bn purchase of the exclusive live rights to 138 Premier League matches for three years beginning in the 2004-2005 season.
The issue of creeping monopoly is at the core of Monti's objections to the broadcast rights deal.
"The announcements made by the Premier League suggest that BSkyB will have an even greater monopoly over live TV rights than was the case in the past. This is bad for competition on broadcasting markets and is bad for consumers," he said.
In the new deal signed between Sky and the Premier League, matches were split into four separate packages in what is said to have been an effort to attract other broadcasters such as ITV and the BBC.
However, there was nothing to stop one company bidding and subsequently Sky picked all four up, despite bids from ITV and the two cable companies for the Saturday matches.
The commission argues that the packages were structured in such a way that only Sky could afford them.
If Monti blocks BSkyB's £1bn deal, it could spell trouble for the Premier League as any changes to the exclusive status of the matches would mean BSkyB would lower its price for the matches. The league relies on this money to pay expensive players' salaries.
The league said it had not yet been officially informed by the commission that action would be taken.
Monti said the commission soon be sending out its concerns to the parties involved, which would then have two months to respond.
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