The shadow media secretary has called on the government to place no more restrictions on TV advertising, in a bid to protect the future of children's TV.
Project Kangaroo's launch could be delayed until 2009 after the Office of Fair Trading called in the Competition Commission to investigate the planned video-on-demand service.
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.
Media secretary Andy Burnham has assured MPs that the debate on product placement is not dead and that he will listen to arguments for allowing it on British TV.
Ofcom is asking stakeholders in the news industry to submit their questions ahead of its Market Impact Assessment (MIA) of the BBC's proposed Local Video service.
Ofcom has slammed the BBC for giving children sleepless nights following the Easter weekend episodes of EastEnders that featured character Max Branning being buried alive.