OFT clears the way for free afternoon newspaper on the Tube

By Daniel Farey-Jones, Brand Republic 07-Apr-05, 12:20

LONDON - The race is on to launch the first competitor to Metro after the Office of Fair Trading gave its backing to Ken Livingstone's moves towards opening up distribution on the London Underground and rail stations.

The OFT today released its findings after the conclusion of a two-year investigation into the deal Associated Newspapers made six years ago with London Underground. The investigation was sparked by a complaint from Daily Express owner Richard Desmond, who has long said he wants to launch a paper to rival Associated's Metro and Evening Standard.

The OFT said the exclusive deal granted Associated went beyond impartiality by effectively locking out any competition.

"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 said.

Associated has responded by offering to give up its afternoon and evening distribution slots, allowing London Underground, Network Rail and train operators to re-tender the rights and earn fresh revenue from any future deals.

Desmond is reported to have a free paper, called London-i, ready to launch. News International is also believed to be resurrecting plans for a free paper, drawn up six years ago.

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