ITC and Ofcom launch consultation on ITV merger rules

Following the Secretary of State's decision announced yesterday to allow the merger of Carlton and Granada, the ITC, Ofcom and the Office of Fair Trading (OFT) will now be required to implement the terms of the pre-conditions proposed - subject to Carlton and Granada's acceptance of them.
The merger is on condition that the companies abide by a set of rules to protect the advertising community from unfair or discriminatory practices in the selling of television airtime, and further rules designed to protect the other ITV companies - Ulster TV, Scottish, Grampian and the Channel Islands broadcaster, Channel.
The ITC and Ofcom, working with the OFT, have been charged with putting these rules in place, in discussion with Carlton and Granada. A review of the ITC's Airtime Sales Rules, which apply to all UK commercial television broadcasters on terrestrial channels, satellite and cable has been commenced.
Carlton and Granada will only be allowed to merge on condition that they agree to the terms of a new regulatory mechanism called the Contracts Rights Renewal (CRR) remedy.
The ITC, Ofcom and the OFT will jointly develop the CRR remedy by November. Ofcom will then administer the remedy once the new communications regulator is vested with its full powers on 29 December 2003 when the Communications Act 2003 comes into force.
In a joint statement the ITC and Ofcom said: "Carlton and Granada may not begin to merge their operations or jointly sell airtime until the Contracts Rights Renewal remedy is in place, the Communications Act is in force and sufficient safeguards have been introduced to protect the other ITV companies."
However, the regulatory authorities anticipate that these conditions will have been met by 29 December 2003.
The Competition Commission has also recommended that the ITC and Ofcom should consider a review of the overall UK television advertising market.
The review will begin with a formal consultation, the details of which are available at: www.ofcom.org.uk
The closing date for consultation will be 14 November 2003 and the ITC and Ofcom intend to publish their conclusions by 29 December 2003.
(SP)