Ofcom Investigating BBC Over Anti-Competitive Rights Bids
Media watchdog Ofcom has begun investigations into the BBC’s dealings with the Football Association to acquire the exclusive broadcast rights to FA Cup matches following a complaint by Kelvin MacKenzie’s Wireless Group earlier this year that the Corporation has used its guaranteed funding to grossly outbid competitors.
TWG claimed that the corporation was abusing its position by paying more than required for the rights, effectively destroying fair competition. Ofcom states that, after preliminary discussions with both TWG and the BBC, it believes that there are “reasonable grounds” to suspect that competition laws may have been breached.
Ofcom’s investigation follows a threat of legal action from The Wireless Group earlier this year and marks the second time the two companies have come to blows over the broadcast rights to sporting events.
In June the BBC was forced to withdraw a promotional trailer claiming that its Five Live station had exclusive broadcast rights for the Euro 2004 tournament following threats of legal action from TWG’s talkSPORT, whom UEFA had granted official commentary rights and broadcast status (see talkSPORT Threatens To Sue BBC Over Football Claims).
Earlier this week saw TWG’s recent legal action against radio ratings body RAJAR come to a head, with Mr Justice Lloyd striking out the company’s claims of an abuse of market power by the audience measurement company.
TWG had claimed that its audience was under-reported by the current RAJAR diary method, pointing to evidence from research firm GfK’s electronic audio meters which claimed its talkSPORT station had around four million extra listeners than reported under RAJAR’s system. (see RAJAR Exonerated As Wireless Court Case Struck Out).
BBC: 020 8743 8000 www.bbc.co.uk Ofcom: 020 7981 3040 www.ofcom.org.uk Wireless Group: 020 7269 7180
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