The deal would bring together the only provider of premium sports channels in Britain and the strongest English football club.
The merger would disadvantage other companies planning to bid for Premier League rights, thereby reducing competition in the wider pay-TV market.
The merger would reinforce the trend towards inequality of wealth between clubs.
The undertakings offered by BSkyB and Manchester United did not address the MMC's concerns or were deemed unworkable.
As a result, the MMC recommended that the deal should be blocked.
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