Carlton and Granada face inquiry into airtime sales price collusion

LONDON - Carlton Communications and Granada are facing an investigation by the Independent Television Commission to determine whether their airtime sales houses have been acting anti-competitively to drive up the cost of TV advertising.

Robin Biggam, chairman of the ITC, is demanding the companies prove they have not been colluding on the cost of airtime sales after Carlton and Granada revealed they had created a virtual enterprise ahead of a potential merger.

Under ITC rules, the two companies must keep their sales houses separate, in an attempt to maintain competitive advertising rates at ITV.

News of the inquiry will be welcomed in the advertising industry, because it has been suspected the two sales houses have collaborated in an effort to drive up airtime prices.

The revelation comes days after Granada appointed former ITC chairman Sir George Russell to the board. In a report in the Mail on Sunday, Sir George is quoted as saying he has doubts about the way the proposed merger between Carlton and Granada is being handled.

Sir George joined the board following Steve Morrison's departure as chief executive.

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