A PYMNTS Company

EU: Hollywood studios, Sky spar with antitrust regulators

 |  January 18, 2016

NBCUniversal, Disney and four other US studios together with Sky UK on Monday rebuffed European Union charges of anti-competitive movie-licensing deals in a crucial hearing ahead of a decision later this year.

The companies’ defense at a three-day closed-door hearing came six months after the European Commission accused them of preventing consumers outside Britain and Ireland from accessing films and other content broadcast by the British pay-TV group.

Clauses in the deals also prevent other broadcasters from making their pay-TV services available in the UK and Ireland.

The accusations by the EU antitrust enforcer came amid a campaign to end restrictions hindering cross-border trade, aimed at boosting e-commerce and growth in the 28-country bloc.

Defenders of territorial licensing, however, say that the system preserves the region’s cultural diversity and safeguards fair payment for artists and content providers.

Other Hollywood studios involved in the case are Paramount Pictures, part of Viacom, Sony, Twentieth Century Fox and Warner Brothers.

Sky UK and the studios face fines up to 10 percent of their global turnover if found guilty of breaching EU rules.

Cecilio Madero, the EU deputy director general for antitrust, and Krzysztof Kuik, the chief of its television unit, led the Commission’s team at the hearing.

Full content: Politico

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.