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The OFT investigation centred on the exclusive rights of Associated Newspapers Ltd (ANL), publishers of the London free morning newspaper the 'Metro' and paid-for afternoon/evening newspaper the 'Evening Standard', to distribute the 'Metro' via London Underground, Network Rail and various train operating companies' (TOC) stations in and around London. The OFT had concerns that, by excluding rivals' newspapers from stations 24 hours a day, despite the fact that the 'Metro' is only distributed in the morning, the exclusivity granted by these agreements went beyond what could be objectively justified. The OFT was particularly concerned that the agreements prevented competing publishers from distributing a free evening newspaper to London commuters, given the importance of access to stations for ensuring sufficient distribution.

ANL has now offered to give up its rights to the afternoon/evening distribution slots, allowing London Underground, Network Rail and the relevant TOCs to re-tender those rights. ANL has also agreed that it will allow third party access to its distribution racks in stations and make reasonable room for third party branding.

The OFT will shortly be consulting third parties through publication of a formal commitments notice, which will set out in more detail how ANL's proposed commitments address the OFT's competition concerns. Assuming the consultation process confirms the OFT's preliminary position, it intends to make a decision to accept binding commitments and close its file.
 
NOTES

1. The OFT launched an investigation under the Competition Act 1998 in 2003 into the exclusive agreements between ANL and London Underground, Network Rail and various train operating companies following a complaint from Northern & Shell, which publishes the 'Daily Express'. Northern & Shell alleged that it was unable to launch a free afternoon/evening paper in competition with the 'Evening Standard' as a result of ANL's exclusive rights over distribution in London stations.

2. The Competition Act 1998 prohibits agreements, practices and conduct that have a damaging effect on competition in the UK. The Chapter I prohibition prohibits anti-competitive agreements and concerted practices, that have the object or effect of preventing, restricting or distorting competition in the UK or a part thereof. The Chapter II prohibition prohibits conduct that amounts to an abuse of a dominant position in a market in the UK, or part thereof.

3. The Competition Act 1998 has been amended, with effect from 1 May 2004, to allow the OFT to accept binding commitments from those under investigation. The formal acceptance of such commitments, which must address the OFT's competition concerns, requires the OFT to close its investigation into the conduct addressed by the commitments. The proposed commitments must be subject to consultation before they can be accepted by the OFT.

4. Formal acceptance of commitments means that the OFT will terminate its investigation into the party's conduct and will not proceed to a final decision. A commitments decision will not include any statement as to the legality or otherwise of the parties' actions, either prior to acceptance of the commitments or once the commitments are in place. Accordingly, the offer of commitments by ANL, and their provisional acceptance by the OFT, does not imply acceptance of an infringement on the part of ANL.