ITV merger faces watchdog review

The proposed merger of beleaguered ITV networks Carlton and Granada has been referred to the competition commission amid advertiser fears that a combined company would dominate the television advertising market.
Trade and Industry Secretary Patricia Hewitt: "The director general of fair trading has advised me that the proposed merger of Carlton and Granada raises competition concerns principally relating to the sale of TV advertising. The merger would greatly increase concentration in TV advertising, leaving one firm with more than half of national TV advertising revenue.
"The DGFT therefore considers that the case requires further examination by the competition commission to assess whether this increase in concentration is likely to lead to a substantial lessening of competition."
Carlton and Granada are keen to combine sales houses but have also proposed a compromise solution whereby one of their sales houses is spun off into a separate company and continues to run autonomously.
(GB)