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24/05/2005

OFT accepts competition commitments from TV Eye

The Office of Fair Trading has accepted binding commitments from TV Eye and its member broadcasters to amend certain arrangements regarding the sale of advertising airtime.
This is the first time the OFT has accepted binding commitments following a Competition Act investigation. TV Eye is owned by ITV, GMTV, Channel 4 and Channel 5 and provides services to them and a number of smaller broadcasters.
The OFT had concerns that some of the arrangements put in place by TV Eye enabled those broadcasters collectively to agree some of the terms and conditions under which they sell advertising airtime to media agencies, thereby placing media agencies in an unduly weak bargaining position. The OFT launched an investigation into TV Eye following a complaint by the Institute of Practitioners in Advertising (IPA).
Following discussions with TV Eye and its member broadcasters the OFT provisionally concluded that the commitments offered addressed its competition concerns and should therefore be accepted. A formal consultation process, which sought the views of interested parties as well as the European Commission, has confirmed this view.
The OFT has therefore decided to accept the commitments and to close its file on the case.
Sir John Vickers, OFT Chairman, said: "In some circumstances the acceptance of formal commitments is the best way to resolve a competition case. The Competition Act was amended last year to make this possible and the TV Eye case is the first of its kind in the UK."
(GB)
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