OFT refers 'Kangaroo' to Competition Commission

The Office of Fair Trading (OFT) has referred Project Kangaroo, the proposed video on demand (VOD) joint venture between BBC Worldwide, ITV and Channel 4—to the Competition Commission (CC) for further inquiry.

Simon Pritchard, Senior Director of Mergers at the OFT, said: "Video on demand is a new and fast-growing consumer sector, and we should judge the issues on evidence, rather than speculate about consumer behaviour. We were in a position to clear the recent LoveFilm/Amazon merger, but that outcome would have been unsafe in this case because we lacked the evidence to make the right judgment. The CC, however, can start with our roadmap of the issues and ultimately decide what remedies, if any, are in fact required."

Kangaroo had been scheduled to launch in 2008, however in a statement ITV said that the reference process is likely to take several months and suggested that Kangaroo is now unlikely to launch to the previously anticipated timetable.

Image: "Kangaroo" CEO Ashley Highfield

DTG Staff  |  30.06.2008

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