The plans come as the government continues its Mid-Term Charter Review, and follows a consultation on the BBC operating license. The competition framework for the BBC is significant, as the size and spending power of the corporation means it has the potential to ‘crowd out’ commercial publishers, and diminish their ability to run sustainable businesses. The PPA has concerns that the proliferation of ‘soft’ content on the BBC News website is replicating content genres that are already well served by specialist publishers.

The consultation cites the PPA’s calls for the materiality process – the process by which the BBC determines if a change to its services may have a significant adverse impact on competition – to formally require the Corporation to consult with stakeholders. The regulator states that such a requirement may be disproportionate and make it more difficult for the BBC to adapt at pace.

However, it has accepted that adding further detail to its guidance will give stakeholders a clear view of what reasonable and proportionate engagement should look like. To complement this, Ofcom is also proposing that the BBC must publicise changes to its public services that are likely to be subject to a materiality assessment: this is intended to ensure that stakeholders are aware of significant changes.

If a change is judged to be ‘material’, the BBC is then required to conduct a Public Interest Test (PIT) to determine if competition impacts are justified by public value. Ofcom plans to give more guidance on how the BBC should engage with stakeholders to bolster meaningful engagement.

Once the BBC has conducted a PIT, Ofcom is currently required to conduct a competition assessment (BCA) or a shorter assessment, including an assessment of materiality. Given that the BBC will generally have found that a change is material if it reaches the BCA stage, Ofcom proposes to ad flexibility in whether consulting on materiality is necessary in the BCA.

The PPA is reviewing the consultation and will meet with Ofcom to discuss the proposals in greater detail.