Ofcom poised to launch probe into rules on TV advert pricing - Business - Evening Standard
       

Ofcom poised to launch probe into rules on TV advert pricing

The £4 billion-a-year TV advertising industry was today braced for a full-blown investigation into pricing by media regulators.

Ofcom said: "The review will establish whether the way TV advertising is currently bought and sold prevents, restricts or distorts competition, and whether this has a harmful effect on consumers."

The regulator warned it could refer the issue to the Competition Commission by the autumn.

Ofcom said it has identified three potential areas of concern: transparency of pricing; bundling of advertising airtime in large packages; and the existing trading model between broadcasters and media-buying agencies, which is unique to the UK.

Ofcom will run an industry consultation until July 22.

ITV has been lobbying regulators to ease Contracts Rights Renewal, the rules that keep a lid on prices and give valuable discounts for media agencies based on their share of advertising spend.

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