OFT To Review ITV Companies’ Revenue Share Restrictions

The Office Of Fair Trading (OFT) is to review undertakings given by ITV companies, Granada and Carlton, and broadcasting and financial services group, MAI, which limit each company’s control of TV advertising revenue to 25% of the market.

In 1994 Granada acquired LWT, Carlton acquired Central Television and MAI bought Anglian Television. The result of these mergers was that each of the three parent companies would have gained control, or significant influence of, around 30% of the TV ad sales market. Such a situation would have required the Monopolies & Mergers Commission to investigate the competition implications of the mergers. In order to prevent MMC investigation, each of the companies agreed to implement the divestments of shares in sales houses and to terminate some sales contracts in order to reduce its control of airtime sales to below 25%.

The ITV companies have so far been prohibited from making further acquisitions or signing new sales contracts which may push their control over 25%. The OFT will now investigate whether these undertakings are still applicable and whether or not a lifting of the restrictions would be harmful to competition in the television marketplace.

Interested parties should contact the Office of Fair Trading by 6 August 1999.

Office Of Fair Trading: 0171 211 8000