OFT to scrutinize Project Canvas

1248PM GMT twenty-four March 2010

The Office for Fair Trading will cruise the issues surrounding Project Canvas Photo GETTY

Opponents of Project Canvas, a corner try in between broadband internet providers and broadcasters, will be means to have their box to the Office of Fair Trading.

Companies, together with the BBC, ITV, BT, Channel 4 and Talk Talk, are on house with the scheme, that aims to rise new record and set-top boxes to await the next-generation of web-delivered video and internet services.

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Although the plan has been provisionally authorized by the BBC Trust, a little organisations, together with Sky and Virgin Media, hold Canvas could crush the IPTV market, and explain the companies concerned with the plan have unsuccessful to rivet amply with the wider industry.

Sky told the BBC Trust that the plan lucky free-to-air broadcasters, and that the impasse of the BBC could consecrate "state aid" to alternative partners concerned in the project. Canvas partners disagree that a usual customary is indispensable to assistance rise the on-demand radio marketplace in the entrance years, whilst opponents, together with the Digital TV Group, that has set standards for set-top box record for some-more than a decade, claims they and radio manufacturers have not bee amply consulted.

In an bid to capture probable accusations of anti-competitive practices, partners concerned in Project Canvas have approached the Office of Fair Trading to benefaction reasons for because the intrigue does not need serve scrutiny.

According to Richard Halton, executive of Project Canvas, it is "clear" that the corner try "does not validate as a merger", and he pronounced that the plan partners "welcomed the opportunity" to explain their position.

The Office of Fair Trading has invited submissions from the industry, asking either they hold Canvas should be noticed as a merger. Those wishing to minister to the conference routine have until Apr 7 to have their representations.