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Ofcom refuses to uphold YouView complaints
There will be no investigation into the claims that YouView stifles innovation and is anti-competitive, industry watchdog Ofcom has said.
Ofcom has announced it will not be opening an investigation under the Competition Act into YouView despite complaints from competitors.
Virgin Media and IPVision recently launched official complaints against video-on-demand service YouView - which was previously known as Project Canvas - after the BBC Trust approved the corporation's involvement in the scheme. The Office of Fair Trading (OFT) also gave the project the green light initially.
Virgin Media had complained that YouView would force other broadcasters to use a "mandated look and feel". It described it as being anti-competitive and said it would "stifle innovation in the broadcasting sector".
Yet Ofcom has said that at the current stage of YouView's development an investigation would be "premature". It added that any impact on competition would have to be outweighed against the benefits that the viewers got from the project.
YouView is a collaboration of seven broadcasters and telecommunication companies including BBC, ITV, BT and TalkTalk. It plans to use a branded interface to bring on-demand web services to set-top boxes early next year.
However, Ofcom added that it will monitor the development. Ofcom's chief executive, Ed Richards, said: "Ofcom's view is that consumers' interests will not be served by opening an investigation."
"But if evidence does emerge in the future that YouView causes harm to the interests of viewers and consumers we may reconsider whether to investigate," he continued.
YouView chief executive officer Richard Halton said: "We have been clear throughout this process that YouView will stimulate competition in the TV platform market and create opportunities for content providers and device manufacturers. We therefore welcome this decision from Ofcom."
A Virgin Media spokesman told Web User: "We are perplexed and disappointed by Ofcom's decision but will not comment further until we've examined their statement and the underlying reasoning in more detail."
Read more:http://www.nbbinoculars.com/blog/
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