Kangaroo Referred To Competition Commission
Kangaroo, the proposed video-on-demand player from BBC Worldwide, ITV and Channel 4, has been referred to the Competition Commission by the Office of Fair Trading.
In a statement released today, the OFT said that having referred the matter to the Competition Commission, the CC “now has 24 weeks to consider the issues, and collect better evidence on the key issues than is currently available”.
This means that it is unlikely that Kangaroo will launch this year as planned.
The OFT said that in reaching its decision, it “considered all evidence as to whether the joint venture would face enough competition from other sources”.
Simon Pritchard, senior director of mergers at the OFT, said: ‘Video on demand is a new and fast-growing consumer sector, and we should judge the issues on evidence, rather than speculate about consumer behaviour.
“We were in a position to clear the recent LoveFilm/Amazon merger, but that outcome would have been unsafe in this case because we lacked the evidence to make the right judgment. The CC, however, can start with our roadmap of the issues and ultimately decide what remedies, if any, are in fact required.”
In a separate statement, BBC Worldwide, ITV and Channel 4 said: “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 marketplace.”
BBC: 020 8743 8000 www.bbc.co.uk ITV: 020 7843 8000 www.itv.com Channel Four: 020 7396 4444 www.channel4.com