TV advertising: Ofcom to abolish Airtime Sales Rules
Ofcom has announced that it will remove rules about the way TV advertising is sold to media buyers and advertisers from 1 September.
The broadcasting watchdog confirmed today that, despite some objections from broadcasters, the Airtime Sales Rules will be scrapped.
The rules were split into two parts - the 'withholding rule' and the 'conditional selling rule' - and were intended to "ensure fair and effective competition".
They governed that all airtime available on ITV1, C4 and Five must be sold and that all broadcasters were prohibited from forcing advertisers and media buyers, who want to buy airtime on one channel, to purchase airtime on additional channels.
Ofcom first proposed the rules were no longer required in March. It said it could see "few incentives to withhold airtime" and it would be "more appropriate" to treat conditional selling by broadcasters on a case by case basis.
During a consultation process with industry, Ofcom said its plans had been met with a "mixed" response but broadcasters had presented "no new evidence" to change its mind.
It said respondents to the consultation "had raised two key reasons" about why it would be inappropriate to remove the rules.
Some felt broadcasters would engage in the behaviour currently prohibited by the rules, either now or in the future, if they were lifted.
And some stakeholders suggested Ofcom postpone its review and undertake either a competition-based market study or a broader review encompassing other rules on the amount and distribution of minutage.
Today Ofcom said: "Having reviewed the consultation responses, our view is that no new evidence has been presented to change our conclusions that it is appropriate to remove the rules.
"In addition, we believe we should complete our review now in order to ensure that unnecessary regulation does not prevent the sector from evolving.
"We conclude that we cannot justify launching a broader review of the market at this time given the lack of clarity about the nature and scale of possible competition problems and consumer harm, and the extended period of uncertainty that the sector would face."
Ofcom said it will monitor the effect of the removal of the rules and warned broadcasters engaging in "anti-competitive conduct" would face "enforcement action".