The legal department of the Institute of Practitioners in Advertising (IPA) has been contacted by at least one media agency claiming News International is "conditionally selling" across titles including The Sun, The Times and thelondonpaper.
Conditional selling in newspapers is the practice of a media owner only selling ad space in a newspaper if ads are also taken out in another paper published by the same company. If an agency refused to package the brands together, it would be charged excessively for the ad space.
One media agency press director said he was considering pulling spend from News International. He added: "The directive has come from senior management and this aggressive selling approach has been ramped up in recent months. This has been discussed with senior management at our agency and we will consider pulling ad spend out of News International. The company has been offering heavy discounts to agencies wanting to advertise in The Sun and The Times, if they take out advertising in thelondonpaper."
While there is a fine line between driving tough deals and conditional selling, some believe there is a legal case to be answered and have contacted the IPA, which has the power to refer the matter to the OFT.
Conditional selling is potentially illegal under the Competition Act 1998 if the publisher in question is considered by the OFT to have a monopoly on the market segment in question.
Geoffrey Russell, director of media affairs at the IPA, said: "The IPA views conditional selling with great concern and, given evidence, it will take it up with the publisher and, in extremis, we will be prepared to go to the OFT to protect our members."
News International declined to comment.
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