IPA welcomes OFT decision on CRR
The IPA has applauded the decision by the OFT to refer the future of the CRR remedy to the Competition Commission (CC).
The advertising agency's trade body has long campaigned that some form of protection for advertisers and agencies is still required given the continued strength of ITV in the marketplace and its unique ability to attract major audiences.
It therefore welcomes the OFT's recommendation that the CC consider making changes to CRR to find a more proportionate remedy, which creates less costs and distortions than CRR but would still address advertiser and agency concerns relating to the broadcaster’s power.
Says Geoffrey Russell, IPA Director for Media Affairs, “Given that ITV has been pleading that it had lost its market dominance and was looking for the complete abolition of the Contract Rights Renewal Mechanism, we believe this recognition of the strength of the broadcaster and the need for continued advertiser protection represents a major success.”
“In these difficult times, everyone wants to see a healthy and vigorous ITV. However, this does not mean granting the broadcaster complete freedom to exploit its market power.”
Last updated 01/06/2009