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Project Kangaroo (IPTV) Faces Further Investigation Delays

Posted: 12th Aug, 2008 By: MarkJ
Project Kangaroo (SeeSaw), the joint BBC, ITV and Channel 4 broadband Internet TV (IPTV) / Video-on-Demand (VOD) service, could be delayed further still after the Competition Commission (CC) extended the timetable for its inquiry.

The original Office of Fair Trading (OFT) investigation began in early June (news) and followed complaints from rivals Sky and Virgin Media, which feared that the broadcasters could use the project to abuse their public service positions for an unfair competitive advantage.

Today the investigation is in the hands of the Competition Commission (CC), which had originally set a deadline of 12th December 2008. Unfortunately this has now been pushed back by another month to mid-January 2009, although it is possible that they may be able to report sooner:

Competition Commission Statement: The CC is also extending the timetable for the inquiry whilst it awaits important information on details of the joint venture, which are still being negotiated by the parties. Whilst the CC will continue with the inquiry, the information required is central to assessing the CC’s statutory questions, including the competitive effects of the joint venture.

The parties have suggested that the information should be available by early September. This would result in our provisional findings being published in early November and an extension to our statutory deadline of about a month to mid-January 2009, although, depending in part on the parties’ progress, we may be able to report sooner. A revised timetable will be published shortly.

Project Kangaroo is a single platform for on-demand TV to broadband devices. The web-based service will provide viewers with the opportunity to access recently-aired programmes from the three broadcasters, as well as content from their archives. The reference was made by the Office of Fair Trading (OFT) on 30 June 2008 and the CC has been asked to decide whether the joint venture may be expected to result in a substantial lessening of competition within any market or markets in the UK for goods or services including the syndication of content rights for video on demand services in the UK.

The commission was keen to stress that this is merely an administrative delay; it has not yet made any decisions about the outcome.
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