OFT demands BBC ‘advantage’ cut

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MediaWeek

June 21, 2005

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OFT demands BBC ‘advantage’ cut

The Office of Fair Trading has questioned the commercial activities of the BBC, demanding it be stripped of all activities that may give the Corporation unfair advantage over its rivals.

In a letter to the Department of Culture, Media and Sport, the OFT raised the possibility of referring the matter to the Competition Commission and argued that the Green Paper proposals are not adequate enough to calm the ire of the commercial sector.

The watchdog concerns address the BBC's public service offerings and the juxtaposition with the offerings that the BBC admit skirts this offering and are commercial.

The OFT said that the BBC had followed some of the values of the commercial sector "to increase its output, and thus market share, at the expense of rivals and to develop new products to expand its presence in new and emerging markets."

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