The BBC is active in an increasing number of markets. In some cases the BBC enters the market using licence fee income; in others its commercial operations have linkages with licence-fee activities--for example, by provision of resources for programme making, joint funding of programmes, trailing of commercial products, and so on. These situations raise serious competition issues. The authors conclude that theory and evidence suggest exceptional risks that anticompetitive practices by the BBC will discourage private sector initiative and investment in broadcasting and related markets and recommend strengthened ex ante regulation of the BBC by OFCOM.
