Grade slams OFT decision
- Published: 30 June 2008 13:14
- Author: Robin Parker
- More by this Author
- Last Updated: 01 July 2008 11:26
- Reader Responses
Michael Grade has accused the OFT of hindering British broadcasters' attempts to compete with the likes of Google and Apple after the watchdog asked the Competition Commission to investigate Project Kangaroo.
The ITV executive chairman said that in referring the proposed VoD joint venture to the commission, the OFT was penalising companies that invest in UK production.
He said there was a "serious problem" with the UK's regulatory framework, which he argued does not have viewers' best interests at heart.
"This venture has been delayed by a reference to the Competition Commission, at the very same time that non-UK companies like Google and Apple are free to build market dominating positions on line in the UK without so much as a regulatory murmur," Grade said.
"There must be a level playing field for those of us whose investment sustains UK production. Companies without that commitment, who financially contribute virtually nothing to the UK creative economy, are trying to use a narrow regulatory remit to exploit our investment at little cost or risk to themselves.
"If they succeed, the losers will be UK viewers, UK advertisers and UK producers. Today's ruling suggests that the regulatory framework does not seem to take that wider public interest sufficiently into account."
In a separate joint statement, BBC Worldwide, Channel 4 and ITV said they remained committed to the venture.
However, BBCW will still need to liaise with the BBC Trust for approval once the Commission publishes its findings, which could be as late as December.
"The parties are confident that when properly subject to more detailed scrutiny by the Competition Commission, the commission will conclude that the joint venture will provide wider choice for consumers and be seen as a pro-competitive force in the market place," the broadcasters said.
"Our aspiration is that Kangaroo will offer a wealth of British content and provide an example of UK innovation and collaboration for the benefit of consumers and advertisers alike."
