The OFT clears Project Canvas

The Office of Fair Trading has cleared Project Canvas, saying it “does not qualify for investigation”.

“The OFT has decided that it does not have jurisdiction to review Project Canvas under the merger provisions of the Enterprise Act 2002, in particular because none of the [Canvas] partners (including the BBC) is contributing a pre-existing business (‘enterprise’)” to the joint venture, a statement said.

The internet TV service, which aims to bring VoD content to digital viewers via Freeview and Freesat is backed by partners including ITV, BBC, BT, Five, Channel 4 and TalkTalk.  However, it is not expected to feature any VoD content from the partners, making it different from Project Kangaroo, which was blocked by the Competition Commission in 2009.

Sheldon Mills, director of mergers at the OFT, said: “In the context of a start-up joint venture such as Project Canvas, the merger control provisions are designed to capture arrangements leading to the transfer of a pre-existing business.

“Our investigation has confirmed that the joint venture partners, including the BBC, do not intend to transfer an existing business into the [venture]. Therefore, regardless of the potential significance of Project Canvas for the future of internet connected television, the notified proposals do not give rise to a merger qualifying for substantive investigation by the OFT.”

In December 2009, the BBC Trust gave the project a provisional green light following an in-depth review into the proposed venture.