More4 not on Freesat

How come More4 and E4 are not on Freesat?
Called "Television without Frontiers", this obscure EU (89/552/EEC CHAPTER II, Article 2) directive states:
"2. Member States shall ensure freedom of reception and shall not restrict retransmission on their territory of television broadcasts from other Member States for reasons which fall within the fields coordinated by this Directive."
It is this paragraph that German public service broadcasters, then the BBC and soon-to-be ITV broadcast their public service channels free-to-air on digital satellites.
So why can BSkyB insist that Channel 4 encrypts Channel 4, More 4 and E4 on satellite, when this would conflict with EU and therefore UK law?
There are reports today of complaints to Ofcom, so perhaps they can finally decide who is right about encrypting public service channels on satellite?
Council Directive 89/552/EEC of 3 October 1989 on the coordination of certain provisions laid down by Law, Regulation or Administrative Action in Member States concerning the pursuit of television broadcasting activities
BBC News: C4 and Sky deny More4 confusion