American film studios and the British satellite channel Sky violated European competition rules by their movie and TV offerings to dish only to consumers in the UK and Ireland. According to research by the European Commission. The preliminary verdict Thursday for a first comment sent to the companies involved.
providers pay close to every major market in Europe, separate contracts shall expire. This practice, the Commission is an eyesore, also because it hampers the development of a European digital market.
Digital market
European leaders eliminating legal and other barriers to the digital market declared top priority. The action against the movie studios makes clear that the Commission is prepared to fully deploy its powers as competition authority to achieve that goal.
The so-called statement of objections is the first step in a procedure which could result companies get a penalty of up to 10% of their annual turnover. Usually it comes to negotiating a settlement, in which firms adjust their commercial practices. They now get first chance
Vestager
According to the Commission, Disney, NBC Universal, Paramount Pictures, Sony, Twentieth Century Fox and Warner Bros. agreements with Sky UK, elsewhere in the EU prevent TV services to take off consumers, as well as via satellite online. Without those restrictions in the license agreements Sky could determine normal commercial grounds to whom it sells these services.
“Consumers want to watch the TV channel of their choice, regardless of where they live or temporarily reside. Our research shows that they can not do this today, thanks to the license terms. We think this is contrary to the competition rules, “said EU Commissioner Margrethe Vestager of Competition in a written statement.
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