The Lithuanian competition authority Konkurencijos taryba has found that the film distributor Theatrical Film Distribution and the firms NCG Distribution and Forum Cinemas, which belong to the same group of companies, agreed on the prices of the distributed films. Although the fines calculated for the cartel constituted more than €3.8 million (US$4.5 million), Konkurencijos taryba took into account that during the COVID-19 pandemic the sector faced unprecedented activity restrictions and thus reduced the fines by 80%.
The authority initiated the investigation after receiving information from the cinema company Multikino Lietuva, which informed to have received an offer from the distributor Theatrical Film Distribution to sign a distribution agreement identical to the one which Multikino Lietuva had already concluded with NCG Distribution, another film distributor. Both contracts contained identical prices and rules on the calculations of film distribution price.
During the investigation, Konkurencijos taryba found that Theatrical Film Distribution had received the contract from the employees of Forum Cinemas and NCG Distribution belonging to the same group of companies. This way, the rental price calculation procedure and rental price applied by NCG Distribution were disclosed to its competitor Theatrical Film Distribution. The exchange of emails confirmed that the companies agreed to apply the same pricing when distributing films in order to limit the application of lower prices (special offers, discounts) in cinemas.
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
Japan’s Nippon Steel Eyes Year-End Close on $15B US Steel Deal Amid Political Uncertainty
Nov 7, 2024 by
CPI
Canada Orders Dissolution of TikTok’s Business Amid National Security Concerns
Nov 7, 2024 by
CPI
India Raids Amazon, Flipkart Seller Offices in Foreign Investment Probe
Nov 7, 2024 by
CPI
Canada’s Competition Bureau Seeks Public Feedback on Updated Merger Guidelines
Nov 7, 2024 by
CPI
FTC Adopts Stricter Reporting Rules for Mergers, Delays Expected in 2025
Nov 7, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Remedies Revisited
Oct 30, 2024 by
CPI
Fixing the Fix: Updating Policy on Merger Remedies
Oct 30, 2024 by
CPI
Methodology Matters: The 2017 FTC Remedies Study
Oct 30, 2024 by
CPI
U.S. v. AT&T: Five Lessons for Vertical Merger Enforcement
Oct 30, 2024 by
CPI
The Search for Antitrust Remedies in Tech Leads Beyond Antitrust
Oct 30, 2024 by
CPI