TV provider Virgin Media has issued a complaint to Ofcom about the web-TV platform Project Canvas, by stating that the standards based service “stifles innovation” and stating the project as anti competitive.

The project was given the go ahead by the BBC Trust in June 2010 as an effort between broadcasters BBC, Channel 4 and ITV and communications providers BT, Arqiva and TalkTalk, Project Canvas is an attempt to bring video on demand to Freview and Freesat.

But Virgin Media, who have a history of criticising the project, say that the joining together of such powerful players in the broadcast and broadband markets will smash the online TV market, and stop any competitors and will stifle rival innovation. Virgin says the TV players account for two-thirds of UK television, and the broadband providers control over had lf the nation’s online connections.

A Virgin spokesperson has argued that the most damning evidence of Project Canvas’ innovation smothering came from recent comments by TalkTalk chairman Charles Dunstone, creating its own digital TV service in favour of joining Project Canvas.

BSkyB has been another vehement detractor from the platform, but has not yet issued a formal complaint. Channel 5 recently pulled out of the collaboration, instead choosing to team up with Canvas’ two largest critics, Virgin Media and Sky. Orange, however, is considering signing up to Project Canvas.

The service that Project Canvas is offering was cleared by the Office of Fair Trading in May, stating the project did not qualify as a merger because it had “no role in aggregating, marketing or directly retailing any such television content.” However, the OFT has not ruled out any further investigations under competition law.

Ofcom and the OFT are expected to rule on a decision to launch a full blown competition investigation in the up coming months.

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4. Project Canvas Could Launch By September And Target 7 Million Viewers
5. Project Canvas Blow As Channel Five Quits