SHERNA NOAH

A proposed catch-up TV service from BBC Worldwide, ITV and Channel 4 has been referred to the Competition Commission.

The on-demand service, provisionally called Kangaroo, was expected to launch this autumn with thousands of hours of TV.

But the Office of Fair Trading said it had referred the venture to the commission to investigate concerns that it could give BBC Worldwide, ITV and Channel 4 too much muscle over prices for their own content.

The commission now has until December 12 to consider and obtain more evidence on the service, which will contain free and some paid-for programmes.

A statement on behalf of BBC Worldwide, Channel 4 and ITV said they were "frustrated" that the decision would delay the launch of Kangaroo, expected to launch online and eventually on TV sets. But it said it was "confident that the joint venture will provide wider choice for consumers and be seen as a pro-competitive force in the market".

ITV executive chairman Michael Grade said the "regulatory framework... seems unable to take the most important interest into account - that of British viewers".

He said: "The UK's three biggest public service broadcasters together invest £2.5 billion per annum in original UK production, representing over 90% of the total spend, as the recent Ofcom report highlighted.

"As digital distribution gathers pace, we want to make our content available for free to online users in the most accessible way through Kangaroo.

"There must be a level playing field for those of us whose investment sustains UK production."