Tories to urge caution over BBC net plans

By Simon Aughton

Posted on 15 May 2006 at 15:06

The Conservative Party has launched an attack on the BBC website, saying that it must be prevented from using its size and resources to push smaller players out of the Internet market.

Shadow chancellor George Osbourne will tell a conference later today that the activities of the BBC protected from market forces by its licence fee, could deny the public new products and services.

'As new forms of media develop, I believe that the BBC must be very careful about not abusing its privileged position and huge resources to crowd out smaller players,' he will say.

'I am concerned that in too many of its non-core activities, particularly on the Internet, it is stifling the growth of innovative new companies that simply can't compete with BBC budgets.'

Video downloading is one notable example, Osbourne believes.

According to The Guardian, the shadow chancellor is expected to call for the corporation's new media operations to be restricted.

He will tell the government 'to think very carefully about offering an inflation-busting increase in the license fee as it negotiates the next seven-year settlement' to ensure that 'the BBC must not become the bull in the china shop of new media'.