ITC Further Statement On TV Sales Arrangements

Following the policy statement the ITC made on 22 March, the ITC has today announced its decision on the outstanding issues on which it had requested further representations.

Regarding the 25% market share, the ITC has concluded that flexibility should only be applied to situations concerning the smaller Channel 3 licensees. The ITC has also decided that flexibility should be considered on a case-by-case formula rather than a pre-determined formula.

Following this ruling, the statement issued today specifically refers to the Time Exchange and Laser Sales – they will not be permitted to create a single sales organisation. The ITC noted that this would in fact break undertakings given by Granada to the Department of Trade and Industry. Only if the terms of this undertaking are modified by the Secretary of State would the ITC review its position.

With regard to Channel 5’s sales, the ITC has decided that it would not be fair or competitive for Channel 5’s advertising to be sold in conjunction with that of any Channel 3 licensee. The ITC expects to make a statement about re-advertising Channel 5 before the end of May.

The ITC has been asked to clarify its position on “rate hardening”. It has confirmed that it regards such manipulation as contrary to fair and effective competition, and has told licensees not to engage in any such practices.

ITC 071 255 3000.