This is in direct breach of the undertakings that the broadcaster has made to the Office of Fair Trading (and Ofcom) to allow fair competition on the satellite system.
Sky does not own the satellites (they are owned by SES Astra and Eutelsat), it does not own the encryption system either (this is provided by NewsCorps NDS system) and does not own most of the content (bought in from abroad or from Sports bodies) but it does own the electronic programme guide (EPG).
By making and selling boxes (which it kindly provides at no charge) which can only use the Sky EPG, Sky restricts the market. For this reason, the company has made undertakings to allow fair access to the platform.
It is very hard to see how this breach will help BSkyB get the "Picnic" service for Freeview or help with the battle with Virgin Media.