C4 revealed to be behind complaint about £320m Unilever ITV advertising deal

LONDON - Channel 4 has been revealed as the broadcaster behind the complaint to the Independent Television Commission, which sparked a probe into Unilever's £320m advertising deal with ITV and could now result in legal action.

Channel 4 is arguing that the deal, the largest to date in UK advertising, raises issues about fair and effective competition in the TV marketplace by breaching rules that stop ITV acting as a single company.

Under current legislation, Carlton Communications and Granada are forbidden from operating as a single sales house and ban deals requiring advertisers to commit a share of revenue to ITV.

The deal locked Unilever's Birds Eye Wall's, Lever Faberge, Unilever Cosmetics International and Unilever Bestfoods into a four-year agreement in return for discounts of up to 25%.

In its letter to the ITC, Channel 4 has asked how the Unilever agreement can be allowed under the current set of rules. It has already received a response from the regulator, which it views as "inadequate" and it might now take the case further and launch a legal action to stop the deal.

However, Granada Enterprises and Carlton Sales have said that each company singed a separate agreement and that no single deal has been signed. This has been backed up by Unilever and its media agency Initiative Media, which brokered the agreement.

At the time, Granada Enterprises managing director Simon Pardon told Marketing: "Granada reached independent terms of business with Unilever that have no impact on any money spent with Carlton."

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