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30/04/2003

Competition Commission raise issues over ITV merger

The Competition Commission have sent 'issues letters' to Granada and Carlton as part of their inquiry into their proposed merger.
Such letters are always sent before the Commission reach any conclusions on mergers and are designed to highlight matters that have been identified for further consideration.
The issues that the Commission intend to consider include whether the proposed merger is likely to affect competition in the advertising market, and, in particular whether Carlton and Granada currently compete for advertising revenue or share in London and in the regions and, if so whether the proposed merger can be expected substantially to lessen that competition.
The Commission will also investigate whether, as a consequence, the merger is likely to lead ultimately to a significant rise in prices, or reduction in quality, or levels of service, for all or some advertisers and/or media buying agencies.
(GB)
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