The Newspaper Society has launched a legal bid to suspend the BBC Trust and Ofcom inquiry into the corporation's £68m plans to launch a series of local video websites.
Lawyers for the group claim that comments made by BBC Trust chairman Michael Lyons at a lunch, which were dismissive of the quality of local press, show that the BBC Trust's review of the plans would be biased.
The BBC Trust has hit back at the group, insisting its review processes are evidence-based and are in line with the Royal Charter and Agreement.
A decision over the value of the BBC's plans is due to be made by the Trust in February 2009.
The BBC has also come under attack from the magazine industry before a House of Commons select committee session investigating the commercial activities of BBC Worldwide, which boasted profits of £118m last year.
Magazine publishers argued that while they accepted that running magazines tied to programming is an acceptable use of the licence fee, other magazines, such as the Lonely Planet, which follows the BBC grabbing a 75% investment in the company, is tantamount to unfair competition.
Publishers hit out at BBC's growing grip on commercial markets
Publishers have criticised the BBC's increasing power as it moves further into commercial markets.
