The future of Project Kangaroo, the online TV joint venture between ITV, Channel 4 and BBC Worldwide, hangs in the balance after the Competition Commission determined that it would restrict competition in the UK video-on-demand market.
However, the Competition Commission, announcing provisional conclusions ahead of the February 8 deadline for a final report, provided some relief for the Kangaroo partners concluding that the venture would not substantially lessen competition for online advertising or content acquisition.
"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," said Peter Freeman, the Competition Commission chairman.
The Competition Commission has published a consultation outlining possible remedies to address the competition issue.
These include looking at remedies to control the way content is offered to other providers and making "material modifications" to the structure of the joint venture.
An example given is "adjusting the scope of the joint venture's activities or the terms of exclusivity between the joint venture and its parent.."
In the event that none of these are effective "prohibition would also be an option".
