London commuters set to get free paper

The way has been cleared for a new afternoon or evening newspaper to be distributed to London commuters, following the completion of an OFT investigation.

The investigation centred on the exclusive rights of Associated Newspapers Ltd (ANL), publishers of the London free morning newspaper 'Metro' and the Evening Standard, to distribute the Metro via London Underground, Network Rail and various train operating companies' (TOC) stations in and around London.

The OFT had concerns that, by excluding rivals' newspapers from stations 24 hours a day, despite the fact that the Metro is only distributed in the morning, the exclusivity granted by these agreements went beyond what could be objectively justified. The OFT was particularly concerned that the agreements prevented competing publishers from distributing a free evening newspaper to London commuters, given the importance of access to stations for ensuring sufficient distribution.

ANL has now offered to give up its rights to the afternoon/evening distribution slots, allowing London Underground, Network Rail and the relevant TOCs to re-tender those rights. ANL has also offered to allow third party access to its distribution racks in stations and make reasonable room for third party branding.

The OFT will shortly be consulting third parties through publication of a formal commitments notice, which will set out in more detail how ANL's proposed commitments address the OFT's competition concerns.

If the consultation process confirms the OFT's preliminary position, it intends to make a decision to accept binding commitments and close its file.

The OFT launched its investigation under the Competition Act 1998 in 2003 into the exclusive agreements between ANL and London Underground, Network Rail and various train operating companies following a complaint from Northern & Shell, which publishes the Daily Express.

Northern & Shell alleged that it was unable to launch a free afternoon/evening paper in competition with the Evening Standard as a result of ANL's exclusive rights over distribution in London stations.

(GB/SP)