TELEVISION

RTE U-turn on ads after probe

STATE broadcaster RTE has made a U-turn in the way it sells television advertising following an investigation by the Competition Authority.

The move came after TV3 lodged a complaint in relation to RTE's practice of "share dealing".

RTE had demanded that advertisers spend a minimum percentage of their advertising budget with them -- in some cases up to 65pc -- or face being charged more for airtime.

Chief executive of TV3 David McRedmond said that his company was now considering whether it would look for damages from RTE. RTE however rejected TV3's claims and said: "No finding of anti-competitive behaviour has been made against RTE."

TERMS

"The investigation initiated by TV3's complaint has closed on amicable and agreed terms," it stated. "RTE was happy to agree to change the way it traded [and its] willingness to do this was directly informed by its overall review of its airtime sales method."

The Competition Authority (CA) said that it was satisfied with the undertakings it has received from RTE which includes an agreement to end share dealing from July 1, 2012.

TV3 said that they would be contacting the Broadcasting Authority of Ireland and the Department of Communications to determine what measures they will be taking in the short term.