ITV's last hope for easing restrictions on its advertising rates was dashed today when Britain's competition regulator said the company would have to stick to its six-year old price cap.
The broadcaster had hoped to persuade the Competition Commission to change its mind from its September "provisional decision" that it would not lift the restrictions, known as Contract Rights Renewal (CRR).
The broadcaster came up with a new compromise proposal to allow it some room to negotiate advertising rates but Diana Guy, the Commission’s deputy chairman, said: "We looked carefully at a new proposal from ITV aimed at introducing greater flexibility into negotiations whilst retaining some protection for advertisers. We found that it would not provide adequate protection for advertisers and its practical application would raise too many uncertainties and questions."
Today statement from the Competition Commission will be a blow for Archie Norman, ITV's new chairman, who is replacing Michael Grade and who will have to find a chief executive for the broadcaster.
