Competition Commission Extends Deadline To Report On Carlton/UNM

The Competition Commission has told the Department of Trade & Industry that it believes there should be an extension to the deadline for its enquiries into the proposed merger of Carlton Communications and United News and Media. A report on the merger was proposed on 8 February, with the Commission expected to complete its report by 16 May (see Carlton-United Merger Deal Referred To Competition Commission).

The merger between the two media giants, which is being investigated to ensure that one company does not dominate the ITV advertising market, was further complicated by the entrance of Granada into the bidding war (see Granada Poised To Bid For Rivals). Its bid has also been referred to the Commission (see Granada Referred To The Competition Commission), and in the light of this, the competition authority has decided that more time is needed to make its decision.

Further consolidation of the ITV network is the main issue. Current regulations which say that no single ITV company can control more than 25% of advertising revenue would be broken if the merger between any two of the groups involved went ahead.

The Commission will now report on both Calton/UNM and Granada by 16 June.

The ITC published its report on the Carlton/UNM merger earlier this week (see United/Carlton Merger Requires Change In Legislation, Says ITC).

Competition Commission: 020 7271 0100