ITC to investigate Unilever's ITV deal

LONDON - The Independent Television Commission is to probe Unilever's £320m deal with ITV to see if it raises issues about fair and effective competition in the TV market place.

The, deal announced in May, was billed as the largest in UK media history, locking Birds Eye Wall's, Lever Faberge, Unilever Cosmetics International and Unilever Bestfoods brands such as Persil, Flora, PG Tips and Dove, into a four-year agreement with ITV. In return, Unilever is expected to gain discounts of 25%. An announcement at the time by Unilever referred to a "deal" rather than "deals", but said it had been signed with both Carlton Sales and Granada Enterprises.

The ITC is believed to be acting in response to an "expression of concern" made by a rival broadcaster about the way in which the deal was done.

A source at one commercial broadcaster said the simultaneous announcement of the deal raised concerns that it could fall foul of ITC rules. They prevent joint selling of airtime by Carlton and Granada and ban deals requiring advertisers to commit a share of revenue to ITV.

All three parties, Granada Enterprises, Carlton Sales and Unilever's media agency Initiative Media, which brokered the agreement, insist there were two separate deals.

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

An ITV spokesman said: "We are just assessing the situation to see if it raises any concerns about fair and effective competition in the market." If problems are identified, the ITC can launch an official investigation.

Carlton sales director Gary Digby said the deal was no different from long-term deals done historically.

If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the .

Market Reports

Get unprecedented new-business intelligence with access to ±±¾©Èü³µpk10’s new Advertising Intelligence Market Reports.

Find out more

Enjoying ±±¾©Èü³µpk10’s content?

 Get unlimited access to ±±¾©Èü³µpk10’s premium content for your whole company with a corporate licence.

Upgrade access

Looking for a new job?

Get the latest creative jobs in advertising, media, marketing and digital delivered directly to your inbox each day.

Create an alert now

Partner content