This is taken from the Guardian:

Media groups unite against BBC

by Stephen Brook, press correspondent
Thursday May 18, 2006

News International, Associated Newspapers and the Telegraph Group have taken the rare step of joining forces to demand that the government curtail the BBC's "digital empire-building".

In an unprecedented joint submission to the review of the BBC white paper, Paul Dacre, the editor in chief of Associated Newspapers, Les Hinton, the executive chairman at News International, and Murdoch MacLennan, the chief executive of the Telegraph Group, have asked the government to ensure that the licence fee does not subsidise the corporation's growth into the digital arena.

It asks that the licence fee be kept at or below the rate of inflation to stop the BBC's digital expansion harming commercial growth.

"The consequence of the white paper could actually be seriously to hinder the development of commercial digital media," the submission says.

Commercial media groups are worried about the BBC's digital ambitions, outlined recently in its Creative Future policy.

The submission on the BBC white paper, draft royal charter and agreement is also signed by David Elstein, the chairman of the Commercial Radio Companies Association and David Newell, the director of the Newspaper Society.

The group said it had a grave concern about "the extent to which the BBC is being given a public policy directive to build a digital empire".

Associated Newspapers fears that BBC expansion of local services will affect its local newspapers and websites, while News International worries that BBC plans to launch a rival version of its community website, MySpace.com.

"The government is handing the BBC an unfair advantage in the digital revolution that is changing the face of the media," the submission says.

"The government is handing the BBC a prime public policy task that should not be the preserve of any media organisation. At the same time, it will allow the corporation to indulge in wide cross-promotion of an increasing range of digital products.

"There cannot be a 'balanced media ecology' where the BBC is given such strong public policy direction and support in the development of digital products. That remit needs to be curtailed."

The submission attacks the BBC Trust, saying its independence and accountability is "largely illusory" and that there is a lack of truly independent safeguards to stop the corporation abusing its position to damage commercial operators.