Regulator Ofcom has announced that it will not open an investigation into YouView (originally called “Project Canvas”) under the Competition Act.


YouView is a joint venture between the BBC, ITV, Channel 4, Five, BT, TalkTalk and Arqiva designed to offer digital terrestrial channels and internet-delivered TV services.


The regulator said it had received complaints from Virgin Media and IP Vision alleging potential breaches of the Competition Act 1998. Eleven other parties, including BSkyB, also complained. Their concerns:


1. Project Canvas partners are incentivised to withhold content from competing platforms;


2. Technical standards produced by Project Canvas had not been developed openly and were not made available for use by those outside the joint venture;


3. Use of the Project Canvas brand (YouView) is tied to the specified user interface/electronic programming guide; and


4. It is likely to restrict competition between TV platforms.


Ofcom chief executive Ed Richards said: “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.


“But if evidence does emerge in the future that YouView causes harm to the interests of viewers and consumers we may reconsider whether to investigate.”


The news was welcomed at YouView, whose chief executive Richard Halton said: “We have been clear throughout this process that YouView will stimulate competition in the TV platform market and create opportunities for content providers and device manufacturers.


“Most importantly it represents a great consumer proposition. We therefore welcome this decision from Ofcom.”


He added: “In a market dominated by pay services, we are creating the only mass-market IPTV service that will be subscription free.


“All our efforts are now focused on launching a brilliant consumer product for launch next year. We look forward to broadening our engagement with wider industry partners over the coming weeks and months.”