LONDON: ITV, the UK's largest commercial TV company, has appealed to the Office of Fair Trading in an attempt to annul the Contract Rights Renewal mechanism - a cap on advertising rates imposed by the competition watchdog as a condition for greenlighting the 2004 merger between Carlton Communications and Granada that formed ITV.
The CRR prevents ITV from raising airtime CPT rates to compensate for falling viewer numbers. The formula was devised by the OFT as a curb on the [then] new giant's dominance of the TV ad market.
The OFT must now decide whether ITV has a sustainable case for scrapping CRR and is expected to spend the next eight to ten weeks deciding whether to instigate a formal review.
Data sourced from Media Week (UK); additional content by WARC staff