LONDON (Brand Republic) - The government is considering launching an inquiry into the activities of the BBC’s public service internet operation, BBC Online, in response to complaints from rivals that it is mis-spending licence-payers’ fees.
According to a Financial Times report, ITN and other media organisations have complained to culture secretary Chris Smith MP about BBC Online’s activities. They claim it is using licence fees to subsidise commercial products and to finance activities outside its public remit.
Last year, BBC Online signed deals to supply free content to internet portal Yahoo! and to Vodafone. This, according to ITN, breached regulations that the BBC must offer commercial terms to third parties.
BBC Online denied any misconduct and said that the deals helped increase public access to its news service.
In addition Smith, the minister for culture media and sport, said he would look into the way the BBC supplies in-flight news to British Airways. ITN complained that the terms of the deal were anti-competitive. However, BBC Worldwide, the BBC’s commercial arm that signed the deal, insisted it generated a “commercial return”.
Smith has not made a final decision on whether to proceed with the investigation into BBC Online, but said he was “carefully considering” it.
The government is also conducting a review of the BBC’s news channel News 24 and is scrutinising the BBC’s plans for digital television and radio channels before deciding whether to give them the go-ahead.
www.bbc.co.uk