Movie theater chain AMC Entertainment won an antitrust case brought by iPic-Gold Class Entertainment, alleging AMC had conspired with another movie theater to keep iPic out of two Texas locations, under a ruling from the Supreme Court of Texas on Friday, January 14.
In a reversal of an appeals court ruling, the state’s highest court stated that the alleged collusion between AMC and Regal Entertainment Inc. to stop luxury movie theater iPic from screening first-run movies in Houston and Frisco was “implausible.”
The two alleged conspirators would have to endure losses for a long period of time, and each would have a strong incentive to let the other suffer losses, reported Bloomberg Law.
“The absence of any plausible motive to engage in the conduct charged is highly relevant to whether a genuine issue for trial exists,” said Chief Justice Nathan L. Hecht in the opinion.
The Court of Appeals, First District, had ruled in December 2019 that iPic had offered enough circumstantial evidence of collusion by AMC and Regal to go to trial. The trial court had previously granted summary judgment to AMC after Regal settled.
The high court rejected iPic’s claims that AMC and Regal used a film distribution joint venture called Open Road to conspire, because there was no evidence that the two movie theater chains ever communicated about iPic.
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
T-Mobile’s Acquisition of Ka’ena Corporation Receives FCC Approval
Apr 26, 2024 by
CPI
UK Regulator Announces Two New Senior Executive Appointments
Apr 26, 2024 by
CPI
Paramount Global and Skydance Media Near Merger Deal, Eyeing CEO Change
Apr 26, 2024 by
CPI
BHP Unveils £31bn Mining Megamerger Proposal with Anglo American
Apr 25, 2024 by
nhoch@pymnts.com
ByteDance Prefers Shutdown Over Sale of TikTok Amid US Ban Threats
Apr 25, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI