OFT Orders Competition Investigation Into Local Authority Advertising Contracts

The Office of Fair Trading (OFT) has today published the results of its long-awaited market study into the outdoor advertising industry. It concludes: "There are reasonable grounds for suspecting that certain contracts entered into by Clear Channel and JCDecaux (media owners) with some Local Authorities relating to advertising on street furniture such as bus shelters and information panels restrict competition". As a result, the OFT has ordered a formal Competition Investigation into the local authority street furniture contracts - the first time it has ever done so following a Market Study. The OFT are particularly concerned at the long duration of some of the contracts (15-20 years) and the exclusivity clauses which prevent new entrants from dealing with local authorities. The OFT stresses that no final determination has been made yet, but one possible outcome is that they will find that these type of contracts infringe competition law. Chris Corney, leading litigation and public sector specialist at law firm DMH Stallard comments, "This has huge implications for local authorities who are trying to generate revenues from outdoor advertising on public land and highways. The OFT has concluded that the outdoor...