The two are implacably opposed to the merger in its current form, chiefly on the grounds of the issue of the two ITV companies combining their airtime sales houses.
Carlton and Granada combined control more than 50% of the UK TV advertising market, which is considered anti-competitive on the grounds that it is a monopoly.
The COI has contacted the Competition Commission, which is currently examining the merger deal, and has told the body that it believes allowing the two to combine sales houses would seriously reduce competition in the market.
The COI and P&G are concerned that once the merger takes place, a merged ITV will have too much power in the market and will use its clout to drive up prices.
Speaking to the Independent on Sunday, Bernard Balderston, associate director of UK media at P&G, said: "We are very much opposed to the merger because of the combined airtime sales force. We don't see how this merger can proceed."
P&G is channelling its lobbying efforts through the Incorporated Society of British Advertisers, which last month applauded the government on its decision to refer the merger of the ITV companies to the Competition Commission.
ISBA singled out the impact on the airtime sales industry, if the two ITV sales houses are allowed to combine, as their main area for concern.
ISBA said a full Carlton/Granada merger, which included a merger of their airtime sales operations, would have considerable implications for the competitiveness of that TV airtime market.
Ian Twinn, ISBA director of public affairs, said: "TV advertising is a very large and significant market. Advertisers believe it is absolutely right that the Competition Commission should examine these implications in detail."
At its meeting tomorrow, ISBA will discuss its concerns with the Competition Commission. It will also raise the issue that if Carlton and Granada are allowed to merge, other sales mergers will follow.
Five, Channel 4 and BSkyB are all thought to have held talks about forming a joint sales venture in response to Carlton and Granada, shrinking the market still further.
This concern is shared by the COI Communications, which controls the government's £85m ad budget. A spokeswoman told the IoS: "The possible knock-on effect of other broadcasters following suit and merging their advertising sales is of concern."
There are alternatives on the table, but neither is favoured by ITV. One is splitting the ITV schedule into bands with different time slots sold by different sales houses and another entails the weekday and weekend slots being sold separately.
Carlton and Granada have asked that their share of the ad market be seen as part of the entire UK display advertising market, rather than just the TV market.
If, as the broadcasters have asked, their share of the ad market is viewed as just part of the market as a whole, their combined market share is just 18%.
If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the .
.jpg)
.jpg)