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TVB is facing investigation by the Broadcasting Authority over complaints that it restricts affiliated stars and singers from appearing on rival TV stations.

The city's major broadcaster has been accused of violating the principle of fair competition and anti-monopoly laws by imposing "unfair" terms on the artists that would directly affect the operations of other broadcasters, such as ATV and Cable TV.

The authority launched the probe based on complaints lodged by ailing broadcaster ATV, according to Sing Tao Daily.

ATV sent a letter to the authority making a number of complaints, such as TVB allegedly imposing unwritten restrictions on artists and singers that deprive ATV of its opportunity to hire artists. Such business practice amounts to monopoly, it said.

ATV also alleged TVB offered "favorable" ad rates to clients.

ATV also alleged some of the best RTHK productions are broadcast exclusively on TVB.

The authority said it is taking the complaint seriously. Initial findings show there was evidence to substantiate the complaints, it added.

A source told Sing Tao Daily: "In the past, the Broadcasting Authority never had a chance to read the contracts [between TVB and the artists] as no impresario or music company was willing to show [them to] ATV and to use it as evidence against TVB."

The source said a possible solution was to impose a pre-condition barring such business practices during the renewal of the broadcasters' licenses.

Currently, artists who try to avoid legal disputes with TVB would simply turn down invitations to appear on rival stations. Or if they do accept the invitations, some of them would only speak in Mandarin instead of Cantonese.

Issues surrounding TVB allegedly monopolizing the industry and the plight of ailing ATV have long been a public concern.

In July, TVB general manager Stephen Chan Chi-wan was confronted by hecklers at a public hearing of the authority's review of the city's two free television broadcasters.

Chan was badgered as he tried to defend the editorial independence of TVB News, with ATV attacking its rival's supposed "monopolizing" of the industry.

Last Wednesday, controlling shareholder Payson Cha Mou-sing of ATV called a highly charged press conference where he touched on his feud with Taiwan billionaire Tsai Eng-meng, past mistakes, money and his battle with cancer.

Cha, who admitted to discussions about selling his stake in the free- to-air broadcaster with "at least three parties," described his lukewarm relationship with Tsai, chairman of Want Want China Holdings (0151), as that of a husband and wife.

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Posted by Hex on Monday, January 25, 2010
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