The British Broadcasting Corp has come under fire from publishers associations this week ahead of the launch of its subscription- free internet access service, for abusing its position as a publicly-funded organization. The British Internet Publishers’ Association, a spin-off from the European Publishers’ Council, told a government committee that the BBC should not be allowed to launch its ISP, Freebeeb.net, as its dominant position in UK TV and publicly-funded status could put smaller ISPs out of business.

The BBC, which is supported by an annual license fee from UK TV- owners, has two online arms: BBC Online is a publicly-funded non- commercial information service and the second most popular web site in the UK, while Beeb.com is an advertising-driven commercial site. The commercial arm can pump money back into the BBC, but not vice-versa. The BBC is allowed, under some circumstances, to advertise Beeb.com on its two TV stations. BIPA is afraid the BBC’s already dominant position and huge marketing clout will give its members, which include the Daily Telegraph newspaper, magazine publisher EMAP Plc and several radio stations, an unfair advantage in competition. The BBC, meanwhile, claims that online service are an extension of its publicly-funded radio and television services.

Yesterday, a remarkable story appeared on BBC Online’s news pages, with details of a speech BBC director general Sir John Birt was due to give last night. Birt was expected to say that unless the BBC is properly funded it will be unable to maintain its online services and the UK’s national culture will be threatened by yet more American images and products, the report said. Social division could be created when people have to pay for the most popular events or valuable information, the news story continued.