This is taken from the Financial Times:

Scrutiny body to rein in BBC Worldwide
By Ben Fenton, Chief Media Correspondent
Published: November 19 2008 02:00

The scrutiny body for the BBC will consider reining in the broadcaster’s commercial ambitions, its chairman said on Tuesday.

The BBC Trust will tighten the guidelines for the operation of BBC Worldwide, the corporation’s commercial arm, Sir Michael Lyons told MPs.

Sir Michael said his organisation, which replaced the board of governors as the supervisory body for the state-owned broadcaster, had heard the chorus of complaint from the commercial sector about the reach of BBC Worldwide.

“The trust has already decided that we need to tighten both the mission and the guidelines around BBC Worldwide,” Sir Michael told the House of Commons select committee on culture, media and sport.

“It is now an appropriate time to review the boundaries of [Worldwide’s successful activities] and we are of the view that they need to be modestly contained and the detail of that we will make public once we have finished our inquiries.”

The hearing was convened to take the BBC’s evidence on the activities of Worldwide, a separately run arm that last year had revenues of £919m ($1.4bn) and profits of £117m, which it returned to the public service arm of the corporation.

The broad and deep reach of Worldwide, which in addition to selling BBC programmes around the world runs its own channels, publishes magazines, furnishes advertising-supported websites and now owns the Lonely Planet travel guides, has caused alarm among commercial rivals.

Independent producers, newspaper groups, magazine publishers and rival travel businesses have all protested to the committee that an unrestrained Worldwide is a threat to their trade.

John Whittingdale, committee chairman, expressed concern at its “increasingly ambitious growth strategy”. “Do you see any boundaries to BBC Worldwide’s activity?” he asked.

Sir Michael acknowledged the concern of critics and said the trust had decided to launch an internal probe into the matter. It was “well advanced” but unfinished.

He said: “I can assure you they are going to be tested ... and I don’t think you are going to be disappointed with the conclusions.”

Later, Sir Michael’s officials said details of the new “boundaries and guidelines” would be published early next year.

Currently, investment by Worldwide has to meet four criteria: that it is commercially efficient, that proposals fit with the “public purpose” of the BBC, and that they do not “jeopardise the good reputation of the BBC or the value of the BBC brand” or distort the market.