BBC Worldwide acquisition of Lonely Planet criticised

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The BBC’s commercial ventures have at times caused its competitors damage and should be more tightly controlled, according to some MPs.

According to the House of Commons select committee on culture, media and sport, BBC Worldwide, which is the group’s commercial arm, has engaged in activities that put the reputation of the BBC at risk.

In a report published early this week, MPs were critical of the acquisition of the Lonely Planet company by BBC Worldwide. Lonely Planet is the publisher of travel guidebooks and a magazine, targeting independent travellers.

Tighter guidelines on the commercial activities of BBC Worldwide are necessary in order to ensure the corporation does not cause distortions in the market, the MPs said.

In October of 2007, after the rules governing its commercial activities were relaxed, BBC Worldwide acquired a 75 per cent stake in the Lonely Planet company. Earlier rules had explicitly required that commercial activities be directly linked to programming on the BBC.

The committee is recommending that the restriction be reinstated, and said that BBC Worldwide should have been more transparent about acquiring the majority stake in Lonely Planet.

The BBC and BBC Worldwide told the committee that they had applied tests before the Lonely Planet purchase similar to those used by the Stock Exchange when publicly-listed companies acquired.

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