EU opens antitrust probe into Disney and other film studios News
EU opens antitrust probe into Disney and other film studios

[JURIST] The European Commission (EC) [official website] on Thursday opened [statement of objections, PDF] formal proceedings looking into whether the Walt Disney Company [corporate website] and other prominent US film studios committed antitrust violations. The EC is extending the Disney proceedings that were already opened on January 13, 2014 to Twentieth Century Fox, Warner Bros., Sony Pictures, NBC Universal and Paramount Pictures. They are also opening proceedings against major European pay-TV broadcasters, such as BskyB in the UK and Canal Plus in France. The commission announced [press release] that it has been investigating “whether provisions of the licensing arrangements between the US studios and the broadcasters prevent the latter from providing their services across borders, for example by refusing potential subscribers from other Member States or blocking cross-border access to their services.” The preliminary view of the EC is that Sky UK, due to restrictions in the agreements with the studios, does not sell its services to other parts of the European Union, thus violating European antitrust laws. The commission noted that the sending of a statement of objections does not prejudge the outcome of the investigation.

The EU has opened many investigations into antitrust violations in the past year. In June the EC said [JURIST report] that they have opened a formal antitrust investigation into Amazon’s e-books business. The investigation will focus on particular clauses in Amazon’s contracts requiring publishers to inform Amazon about more favorable or alternative terms offered to Amazon’s competitors. In May the EC opened an investigation [JURIST report] into potential antitrust violations in the e-commerce market with the scope of the investigation including a number of the world’s largest technology and search companies. In April initiated [JURIST report] antitrust proceedings against Google accusing the company of utilizing their dominant position in the search engine market to hurt competitors. In February the EC reached a tentative settlement [JURIST report] with Google in connection to the ongoing EU antitrust investigation of the company.