Kangaroo hit by competition ruling

 

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By Stuart Turton

Posted on 3 Dec 2008 at 09:49

The Competition Commission has determined that television on-demand service Kangaroo will "lessen competition".

Kangaroo is the codename for a joint venture between BBC Worldwide, ITV and Channel 4, which will see content from all three providers united under one service.

"We are concerned that the loss of rivalry between BBC Worldwide, ITV and Channel 4, who are normally regarded as close competitors, could restrict existing and future competition for video-on-demand," says Peter Freeman, the Competition Commission chairman.

The Competition Commission, announcing provisional conclusions ahead of its 8 February deadline, did admit that Kangaroo "has much to offer" and claimed it would not lessen competition in online advertising or content acquisition.

The organisation is now looking at ways to address any loss of competition, with one example being to alter how content is offered to rivals, and potentially "making material" modifications to the the structure of the venture.

The partners say they "will continue" to work towards launching the service next year.

"Today's announcement represents the provisional findings from the Competition Commission, at the mid-point in this process. We welcome the Commission's recognition that "[Kangaroo] clearly has much to offer".

"These suggested remedies are not an exhaustive list. They represent possible options that the Commission has identified as a starting point for discussion. We look forward to the dialogue on these and other potential remedies with the Commission over the coming weeks."