The Charter and Agreement place duties on Ofcom to consider the impact of the BBC’s activities on fair and effective competition.
As a large, publicly-funded organisation, the BBC naturally affects competition in the wider media market. It may have a positive effect by increasing choice or encouraging sector-wide innovation, for example. But in meeting its objectives, the BBC may also harm the ability of others to compete effectively.
Our job is to assess the impact of the BBC’s activities on competition. We also set requirements for the interaction between the BBC Public Service and its commercial activities.
Review of how we regulate the BBC
As we approach the mid-point in the BBC’s current Charter period, we have been reviewing the BBC’s performance and our future regulation of it.
We have also published our review of the interaction between BBC Studios and the BBC Public Service. In this review we sought to better understand how the BBC has followed the rules we apply to its commercial activities, and whether our regulation remains effective.
In November 2022, we published a consultation on how Ofcom regulates the BBC’s impact on competition (PDF, 819.0 KB). The consultation set out proposals to change our guidance about how the impact on competition from proposed changes to the BBC’s public services is assessed, and to place a requirement on the BBC to publicise planned changes to its public services.
Following consultation, we decided to place a new requirement (PDF, 684.9 KB) on the BBC to publicise changes to its public services that are likely to be subject to a materiality assessment by the BBC, to encourage it to be more transparent with stakeholders about its plans and more consistent about how it makes them public. We have also made some small changes to the trading and separation requirements.
Policy and guidance
Here you'll find our rules relating to different areas of BBC activity that could lead to competition concerns, and guidance to explain the tools we use to protect fair and effective competition in the areas that the BBC operates.
A general overview of our approach to BBC competition regulation (PDF, 139.2 KB)
How we would enforce these competition requirements
Assessing the impact of the BBC's public service activities
When the BBC proposes a change to its public services activities, Ofcom will assess whether or not the public value of the change justifies any adverse effects on fair and effective competition.
We can also assess whether an existing BBC public service activity is having a significant adverse impact on fair and effective competition. This includes an assessment of whether the public value of the service justifies any adverse impacts on fair and effective competition.
Guidance: How we assess the impact of the BBC's public service activities (PDF, 356.1 KB)
Commissioning for the BBC's public services
Over the course of the Charter period, the BBC must commission an increasing number of programmes; and the competitive process it follows must be fair, reasonable, non-discriminatory and transparent.
Ofcom's role is to enforce these requirements, monitor the BBC's compliance and -- if necessary -- impose additional requirements to protect fair and effective competition.
In February 2019, we decided that no additional regulation was needed in this area.
Distribution of the BBC's public services
We can consider specific competition concerns about the way the BBC distributes its public services. When assessing concerns, we will take into account the need for the BBC to fulfil its Mission and Public Purposes.
Distribution of BBC public services: Ofcom’s requirements and guidance (PDF, 159.7 KB)
Handling non-editorial complaints about the BBC
Under the BBC Agreeement, Ofcom has determined:
- the form in and intervals at which the BBC must report to Ofcom in relation to relevant complaints received about non-editorial (competition and other regulatory) matters; and
- the form in and intervals at which the BBC must publish information about the operation and effectiveness of its complaints-handling procedures for non-editorial (competition and other regulatory) complaints.
Determinations by Ofcom in relation to BBC non-editorial complaints handling (PDF, 700.7 KB)
Assessments
Materiality assessments
When the BBC plans to make a change to its public service activities, it must first consider whether the change is 'material' (or carry out a 'materiality assessment'). Launching a new public service, or changing something that could have a significant adverse effect on fair and effective competition, would be considered material.
Below you'll find information about recent materiality assessments.
We reviewed the materiality assessment (MA) provided by the BBC on 2 February 2023 in relation to its proposed changes to BBC Sounds. We decided not to require the BBC to carry out a Public Interest Test (PIT) for these proposals.
Review of the BBC’s materiality assessment of proposed changes to BBC Sounds (PDF, 257.1 KB)
The BBC consulted and subsequently carried out a public interest test (PIT) on its plans to increase the amount of archive content on BBC iPlayer. The BBC Board found the proposed change to be not material.
As required by the BBC Charter and Agreement, Ofcom conducted an assessment of the proposed change to determine its materiality. Following consultation on our initial view that the change was not material, we published a statement concluding that the BBC could proceed with its proposal.
Statement: Review of proposed increased amount of archive content on BBC iPlayer (PDF, 370.3 KB)
Consultation: Review of proposed increased amount of archive content on BBC iPlayer (PDF, 365.6 KB)
We reviewed the materiality assessment provided by the BBC on 27 September 2022, in relation to its proposals for the provision of local online news in England. We decided not to require the BBC to carry out a public interest test for these proposals.
Ofcom published a letter to the BBC concerning trials that were being carried out on BBC Sounds.
We agreed with the BBC’s determination that the trials taking place on BBC Sounds did not constitute a material change. We considered that the relatively small scale of the changes, and the fact that they were for a limited time period, meant they were unlikely to have an impact on competitors' incentives to invest and compete in the market. We did not, therefore, require the BBC to conduct a public interest test.
Letter in response to BBC's materiality assessment of BBC Sounds trials (PDF, 154.6 KB)
Ofcom published a letter to the BBC and Radiocentre (PDF, 174.8 KB) concerning BBC Radio 1’s Relax stream.
We agreed with the BBC’s determination that the proposed Radio 1 Relax stream did not constitute a material change. We considered that the impact on competitors’ services was likely to be low, particularly given that the uptake of the Radio 1 Relax stream had been modest and that we did not consider it likely to grow substantially in the future. We did not, therefore, require the BBC to conduct a public interest test.
Ofcom published a letter to the BBC concerning BBC Radio 1’s Dance stream.
We agreed with the BBC Board’s determination that the proposed Radio 1 Dance stream did not constitute a material change. The impact on competitors’ services was likely to be low, particularly given Radio 1 Dance will be online only and contain no new or exclusive content. We did not, therefore, require the BBC to conduct a public interest test.
Materiality assessment of BBC Radio 1’s Dance stream (PDF, 255.0 KB)
Competition assessments
Our role involves considering whether a change proposed by the BBC is material and, if so, determining whether it may proceed.
When making our decision, we might carry out a competition assessment (BCA). This requires us to conclude whether the public value of the proposed change justifies any adverse effect on fair and effective competition.
Below you'll find information about recent competition assessments.
The BBC has proposed to extend the number of originated Welsh-language hours offered by BBC Radio Cymru 2 so that it becomes a new UK Public Service. As required by the BBC Charter and Agreement, we carried out a shorter competition assessment of its proposal. This statement explains our final determination that the BBC may proceed with its proposal and our decision to place Operating Licence conditions on the service.
The BBC proposed to launch a BBC Three broadcast channel. It consulted and subsequently carried out a public interest test on its plans.
As required by the BBC Charter and Agreement, we carried out a competition assessment. We reviewed how the BBC has developed its proposals and its assessment of their public value, as well as assessed the impact of the BBC’s proposals on competition. We consulted on our provisional determination (PDF, 888.2 KB) that the BBC could go ahead with its plans, and took account of feedback from stakeholders in response.
We concluded in our final determination (PDF, 896.1 KB) that the BBC could proceed with its proposal.
BBC iPlayer Competition Assessment: Consultation on Ofcom’s provisional determination (PDF, 1.5 MB)
BBC iPlayer Competition Assessment: Final determination (PDF, 813.3 KB)
We concluded that the BBC could proceed with planned changes to BBC iPlayer, subject to certain conditions and guidance.
Materiality Assessment of the BBC’s Proposed Change to the BBC iPlayer: summary (PDF, 302.6 KB)
The BBC proposed a number of changes to the BBC iPlayer and provided its plans to Ofcom for consideration.
In order to protect fair and effective competition in the TV sector, Ofcom examined whether changes which the BBC wished to make to its licence fee-funded TV, radio and online services were significant enough to merit detailed scrutiny.
Ofcom decided that the BBC’s proposed iPlayer changes were material, and that the BBC should conduct a ‘public interest test’ to properly assess their value and potential impact on other broadcasters.
Following representations from the BBC – including on the confidentiality of any information in our decision – we published our full decision, redacted for confidentiality, and final interim directions to the BBC.
BBC iPlayer Final Interim Directions (non-confidential) (PDF, 164.0 KB)
In June 2018, we published our final decision to approve the launch of a new BBC television channel for audiences in Scotland.
Other competition-related work
In September 2018, Wireless asked Ofcom to initiate a BBC Competition Review into how BBC Radio acquires sports rights. We have reviewed Wireless’ submission against our published guidance, which sets out the basis for launching such a review. We have decided it would not be appropriate to open a competition review at this time. We will continue to observe the sports radio sector and track the future acquisition of sports rights by BBC Radio and Wireless.
The BBC has announced that it is planning to launch new DAB+ extensions for BBC Radio 1, BBC Radio 2 and BBC Radio 3, which will also be available on BBC Sounds. It also announced its plans to extend the broadcasting hours of BBC Radio 5 Sports Extra. This document provides information on the regulatory processes for these changes.