Way clear for free London evening paper to be launched

LONDON - Associated Newspapers has agreed to give up its exclusive distribution rights on the London Underground in an agreement with The Office of Fair Trading, clearing the way for rivals to launch a new afternoon or evening newspaper to commuters that could challenge the Evening Standard.

Publishers have been waiting for such a move since 2003 when the OFT's investigation was launched.

Lining up are Richard Desmond's Northern & Shell, with its London-I concept, News International and Guardian Newspapers. Associated Newspapers had at one stage been considering a launch as well, but seemed to rule it out last year.

Associated Newspapers' rights will cease by April 12 under the agreement, which will also provide third parties with access to its distribution racks in stations and give them reasonable space and prominence for branding purposes.

Vincent Smith, OFT director of competition enforcement, said: "We welcome the commitments given by Associated Newspapers. This opens up the market for competitors potentially to provide London commuters with additional afternoon or evening newspapers."

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