BSkyB: 2-0 down at half-time but still in the game.

The Competition Commission has delivered a serious ruling that goes to the heart of the ITV issue: How can it be expected to develop and execute a much-needed new corporate strategy with a well-funded ambitious competitor breathing down its neck?

The good news for Sky is that there is no plurality of news or concentration of advertising power. So on the media domination front, it is off the hook.

But it still has to argue the corporate stranglehold issues.

And the bad news is that Michael Grade, the ITV boss, has hardly thrown out the welcome mat.

The commission is talking tough and the options do not look attractive for Sky, which at present is staring at a loss of more than £200 million on its near-18 per cent stake.

But it has faced worse interim rulings and turned them round.

Sky may yet be able to persuade the regulator that it it should not sell some or even any of its ITV shares, if it can propose some other sanctions instead.

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