Communications regulator Ofcom has said that it will not be investigating "Project Canvas", despite receiving complaints from Virgin Media and IPVision.

The project is a partnership between the BBC, ITV, Channel 4, Five, BT, TalkTalk and Arqiva that will offer digital terrestrial channels and internet-delivered TV services through a set-top box connected to TV sets. The service will be known as YouView

Both Virgin Media and IPVision said that the project could breach the Competition Act 1998. BskyB and ten other companies have also submitted concerns to Ofcom.

The complainants said that the project incentivised partners to withhold content from competing platforms, that it had not developed technical standards openly nor made them available to those not involved and that if realised the project was likely to restrict competition between TV platforms.

However Ofcom said that an investigation would be "premature" as the impact of YouView on the market "will not be known with any confidence for some time".

In addition Ofcom said that YouView was likely to benefit viewers and consumers, thereby offsetting any potential harm to competition.

Despite this Ofcom said that it will monitor the development of YouView and will intervene should concerns arise.

Ed Richards, Chief Executive of Ofcom, said, "Ofcom's view is that consumers' interests will not be served by opening an investigation. It would be premature at the current stage of YouView's development given the absence of a clear risk of consumer harm.

"But if evidence does emerge in the future that YouView causes harm to the interests of viewers and consumers we may reconsider whether to investigate."