Regulator refuses to investigate Project Canvas

19th Oct 2010 07:50

Broadcast regulator Ofcom has rejected calls for an investigation into the BBC, ITV and BT's new online on-demand service YouView saying it would be premature at this stage.YouView, currently called Project Canvas, is a partnership between the BBC, ITV, Channel 4, Five, BT, TalkTalk and Arqiva and will offer digital terrestrial channels and internet-delivered TV services via a set-top box connected to viewers' TV sets. Virgin and BSkyB were among the companies that complained about the new service on the grounds it could encourage members to withhold programmes and restrict competition. But Ofcom said internet-based TV is still an emerging sector and the impact of YouView on the market will not be known with any confidence for some time. The regulator added that the new service will bring benefits to viewers and consumers and any potential harm to competition would need to be offset against these benefits."Ofcom's view is that consumers' interests will not be served by opening an investigation. It would be premature at the current stage of YouView's development given the absence of a clear risk of consumer harm," chief executive Ed Richards said.