Just as agreement seemed complete on Project Canvas, the cross-industry attempt to fix a standard for online TV content, Virgin Media has called foul.
The company has filed a complaint with industry regulator Ofcom to the effect Project Canvas is “anti-competitive, restricts consumer choice and jeopardises the future development of next-generation TV in the UK. The joint venture partners are creating a proprietary closed platform which they control.”
The main bone of contention appears to be that Virgin Media feels the six partners in the Project (the BBC, ITV, Channel 4, BT, TalkTalk and Arqiva) have not stuck to their original objective of developing open standards for the delivery of on-demand TV.
Virgin Media is also asking the Office of Fair Trading (OFT) to intervene on the grounds that the venture breaches the Competition Act.
Virgin insists that the complaint is not malicious or mischief-making, saying that it has worked with Canvas partners successfully in the past. “However, the Canvas partners have significantly exceeded their original claims to be creating a common set of open standards which could have been improved upon by others and are now intent on controlling every aspect of how people watch TV. We strongly urge Ofcom, supported by the OFT, to examine Project Canvas thoroughly and its clear anti-competitive behaviour.”
The OFT gave Project Canvas clearance earlier this year and the plan was eventually approved by the BBC Trust in June.
The BBC remains optimistic about the venture, saying in a statement: “Our proposals remain unchanged and will create an open standards-based internet connected TV environment within which competition and innovation can flourish. We remain focused on launching a consumer proposition next year that will transform people’s daily TV viewing experience.”
Ofcom has two months to decide on whether or not a full Competition Act inquiry is necessary. In the meantime, Project Canvas partners is likely to continue development.