London - Project Kangaroo, a Web video-on-demand joint venture in the works from U.K. broadcasters the BBC, ITV and Channel 4, has been criticized by the U.K.'s Competition Commission for potentially restricting competition, The Register reported.

"We are concerned that the loss of rivalry between BBC Worldwide, ITV and Channel 4, who are normally regarded as close competitors, could restrict existing and future competition for video-on-demand," said Competition Commission chairman Peter Freeman.

The regulatory body has the authority to block the launch of Project Kangaroo.

The Commission is set to hear arguments from the joint venture partners on how they would deal with competition concerns -- raised first by U.K. video service providers Virgin and Sky -- before it make a final decision on Feb. 8.

Related Links:
http://www.theregister.co.uk/2008/12/03/project_kangaroo/

http://snipurl.com/76kml (DMW previous coverage)