ITV Micro-regions: consultation on provisional decision
This consultation has now closed.
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Summary
- The Office of Fair Trading ('OFT') received representations from an advertiser and an MP in September 2010 asking it to consider intervening in relation to ITV's proposals to modify the geographic basis on which it sells ITV1 advertising airtime by merging three pairs of micro-regions. Originally scheduled for 1 January 2011, these proposed changes have been deferred by ITV management and are now planned for 1 January 2012.
- The OFT considered the matter in relation to its duty to monitor the merger undertakings ('the undertakings') given by Carlton and Granada in 2003 in connection with their proposed merger ('the merger') to form ITV plc (ITV). The undertakings are sometimes also referred to as the Contract Rights Renewal (CRR) undertakings.
- Clause 10(h) of the undertakings states:
'Carlton and Granada agree that they shall not change their Current Airtime Sales System without the consent of the OFT in a way that materially alters the basis on and the way in which they offer Commercial Airtime for sale'. [see note 1]
- The OFT considered the meaning of this clause and obtained commercially confidential information from ITV to enable it to reach a decision in relation to ITV's proposals.
- The OFT published its provisional decision on 24 June 2011, that ITV's plans were compatible with the undertakings. The OFT set out its reasoning and invited comments from interested parties. A summary of these responses and the OFT's analysis of them has been published alongside this final decision.
- The OFT's final decision confirms its provisional view that ITV's plans will not materially alter the basis on which ITV offers Commercial Airtime for sale. The OFT also does not regard the change as constituting a material alteration to the Current Airtime Sales System (CASS). The OFT considers that ITV's commercial plans are therefore compatible with the undertakings.
- The OFT notes that regional advertisers are protected by other clauses in the undertakings which require ITV to offer fair and reasonable terms when selling ITV1 advertising airtime.
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Related documents
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Contacts
Team Leader: Steve Lisseter (steve.lisseter@oft.gsi.gov.uk, 020 7211 8126)
Project Director: Peter Lukacs (peter.lukacs@oft.gsi.gov.uk, 020 7211 8473)
Senior Responsible Officer: Sonya Branch (sonya.branch@oft.gsi.gov.uk, 020 7211 8826)
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Media enquiries
Any media enquiries should be directed to a member of our Press Office.
Note 1. The definition of Commercial Airtime and Current Airtime Sales System in the undertakings is set out in the full decision.
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