Âé¶¹Éç

Trust decision on fair trading appeal by IP Vision

Date: 21.12.2009     Last updated: 23.09.2014 at 09.48
The Âé¶¹Éç Trust today announced that it has rejected the main substantive points of a fair trading appeal against the Âé¶¹Éç Executive from IP Vision, a manufacturer of hybrid Freeview and video-on-demand set-top boxes. However, the Trust partially upheld the appeal on a process point only…

IP Vision wanted to build and add to its platform a bespoke version of the iPlayer, offering syndicated Âé¶¹Éç on-demand content, but the Âé¶¹Éç Executive did not allow it to do this. IP Vision's complaint alleged that in taking this decision the Âé¶¹Éç had breached the Âé¶¹Éç's fair trading policy and guidelines, competition law and the Âé¶¹Éç's own on-demand syndication policy and guidelines.

The Trust's Finance and Compliance Committee (FCC) found that the Âé¶¹Éç had not acted contrary to either competition law or its own syndication policy and guidelines and therefore rejected these elements of the appeal. It noted that the Âé¶¹Éç had demonstrated that it had taken into account the three main points set out as examples in the syndication guidelines which enable the Executive to decide if it is justifiable for the Âé¶¹Éç not to syndicate content: impact on the wider market, the ability of the Âé¶¹Éç to fulfil its public purposes, and value for money.

When considering whether the Âé¶¹Éç had breached the fair trading guidelines, the FCC found that the Executive had failed to properly assess the competitive impact of its refusal to allow IP Vision to implement their self-build Âé¶¹Éç-branded iPlayer, and therefore upheld that part of the appeal on the basis of the processes followed. However, the FCC found that, had the Âé¶¹Éç Executive carried out such an assessment, it was unlikely the Âé¶¹Éç Executive would have come to a different decision. The FCC therefore partially upheld this part of the appeal on a process point only.

The FCC also noted that when IP Vision's complaint was considered by the Âé¶¹Éç's Executive Fair Trading Committee (EFTC) at the second stage of the complaints process, all elements of the complaint were dismissed, but the EFTC stated that &there is some merit in the complainant's concerns about the Âé¶¹Éç's ‘seemingly arbitrary changes in policy, attitude and long periods of non-responsiveness’".

The FCC also noted that this decision does not prevent IP Vision from appealing to the competition authorities.

Rotha Johnston, Chair of the FCC, said:

"The market for on-demand content is developing dynamically. In light of the ongoing success of the iPlayer, the Trust's job when reviewing the Âé¶¹Éç Executive's approach to syndication, is to ensure that the Executive considers both positive and negative impacts on the sector.

"The Executive not only has to make sure that users have a consistent iPlayer experience regardless of the platform, thereby safeguarding the Âé¶¹Éç's brand, but also has to consider the value for money of any investment in another platform.  In this case, the Trust found that the Executive had provided reasonable arguments as to why implementing a self-build iPlayer for IP Vision could have jeopardised both value for money and the Âé¶¹Éç's brand."

The Trust has also announced it is to carry out a scheduled review of the Âé¶¹Éç's syndication policy, two years on from its initial implementation.

In October 2009, the Executive published a clarification on the syndication guidelines which sets out how the Âé¶¹Éç will make iPlayer technology available to third party providers such as cable/satellite TV platforms or websites. The general approach is to make standardised iPlayer technology available, but if this does not work for existing platforms the Executive has stated it will only consider a) adjusting iPlayer technology for platforms with above 100,000 users, and b) building a bespoke iPlayer for platforms with more than 500,000 users. It also formalised a ban on any third parties building their own iPlayer products, in order to ensure a consistent user experience.

The Trust has concluded that the substance of this clarification amounted to a significant change to the syndication guidelines. This should have been referred to the Trust for approval before publication. It will now be included in the overall review of syndication policy.

Rotha Johnston added:

"This clarification to the Âé¶¹Éç's syndication policy should have come to us for the necessary scrutiny before being published and we'll be looking carefully at the policy and guidelines overall as part of our planned review early next year."

Ends

Notes to editors

Full details of the appeal can be found within the finding document here:

The Âé¶¹Éç's online syndication policy and October clarification on syndication.

More information on IP Vision

IP Vision's primary product is an HD-ready hybrid set top box platform which combines Freeview services with a broadband internet connection to deliver digital TV and video on-demand entertainment, including HD downloads. The platform operates as a direct-to-consumer service under the ‘Fetch TV brand’, or a ‘white-label’ unbranded platform for third parties.