Commission set to postpone decision on ITV merger

LONDON - The Competition Commission is set to delay its decision on the merger of broadcasters Carlton and Granada, after the companies changed their proposals to fend off fears that combining their sales houses would give them a monopoly in the TV airtime sales market.

The companies are understood to have offered to change the way ad rates are set to make them related to the size of TV audience, rather than the current system, which is based on ITV average station pricing.

ITV average station price is calculated by dividing advertising revenue by the number of people viewing the ads in an ITV region.

There are concerns that if this method of calculating the cost of airtime remains in place, a merged ITV could charge what it likes for airtime, because it will control more than 50% of the UK TV ad market.

Advertisers already complain that they are forced to pay high rates even when audiences are low.

Under the proposed system, the cost of airtime would rise when ratings are high, but would fall if programme ratings disappoint, according to a report in The Times.

The Competition Commission had been set to rule on the merger on June 25, but is expected to announce that it needs more time to consider the new proposals.

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