CNC fines Egeda for its variables in determining public broadcasting fees in hotel rooms

On March 6, the Spanish Competition Commission fined Entidad de Gestión de Derechos de los Productores Audiovisuales (Egeda) 478,515 euros for abuse of dominance in violation of Article 2 of Spanish Competition Act 15/2007 and Article 102 of the TFEU. The Spanish Confederation of Hotels and Tourist Accommodation (Confederación Española de Hoteles y Alojamientos – CEHAT) had filed a complaint with CNC, leading to subsequent investigation.

Egeda had charged a monthly fee from 2005 to 2011 for public broadcasting in hotel rooms, scaled to the number of stars of the hotel and the number of beds available. The CNC found that such a formula was abusive and unfair because by basing the fee on the number of hotel beds, and not hotel occupancy, the rates “did not take into account either the intensity or the value of the use of the rights managed by Egeda.”

The CNC also determined that the mandatory negotiation as required by the Intellectual Property Act between users and Egeda was distorted.

Full content: Comision Nacional de la Competencia

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