MUMBAI: The BBC could face an investigation by the Office of Fair Trading (OFT) if it does not scale back its commercial activities. 

Media reports indicate that the OFT has written to the BBC warning that such profit-making activities could be uniquely damaging to effective competition. It said this raised the additional issue of whether the BBC should be engaged in such activities at all.

As had been reported earlier by Indiantelevision.com BBC Worldwide which the broadcatsers commercial arm made a profit of 55 million pounds. OFT's letter argues that the BBC's main argument in defence of Worldwide and its other commercial activities - that they raise money for the broadcaster and by extension the licence fee payer cannot be a sufficient justification.

The OFT has also expressed concern over the independence of the so-called BBC Trust, proposed by the Government in its Green Paper earlier this year to replace the board of governors as the broadcaster's self-regulatory body. The watchdog is in favour of creating an independent regulator for the BBC. A report in UK publicatiobn the Independent states that the unprecedented criticism from the competition watchdog - which has the power to refer the case to the Competition Commission - will put further pressure on the UK Government to force the BBC to sell off parts of BBC Worldwide.