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EU opens anti-trust case against Sky and US film studios EU opens anti-trust case against Sky and US film studios
(about 1 hour later)
The European Commission has accused Sky TV in the UK and six major Hollywood studios of breaking EU competition rules by blocking access to movie content in other EU countries.The European Commission has accused Sky TV in the UK and six major Hollywood studios of breaking EU competition rules by blocking access to movie content in other EU countries.
The Commission's anti-trust regulator has issued them with formal complaints.The Commission's anti-trust regulator has issued them with formal complaints.
The six studios are Disney, NBC Universal, Paramount Pictures, Sony, 20th Century Fox and Warner Bros.The six studios are Disney, NBC Universal, Paramount Pictures, Sony, 20th Century Fox and Warner Bros.
There was no immediate reaction from the Hollywood studios or Sky TV. They can now respond formally to the claims. The Hollywood studios and Sky TV have now been asked to respond formally to the claims.
The complaint follows an 18-month investigation by the European Commission into licensing agreements between the film studios and Sky, as well as other European broadcasters.The complaint follows an 18-month investigation by the European Commission into licensing agreements between the film studios and Sky, as well as other European broadcasters.
The Commission believes the deals have clauses that grant absolute territorial exclusivity to Sky and eliminate cross border competition between pay-TV companies elsewhere in the EU.The Commission believes the deals have clauses that grant absolute territorial exclusivity to Sky and eliminate cross border competition between pay-TV companies elsewhere in the EU.
Companies respond:
Other broadcasters under investigation include Canal Plus of France, Sky Italia, Sky Deutschland and DTS of Spain.Other broadcasters under investigation include Canal Plus of France, Sky Italia, Sky Deutschland and DTS of Spain.
"European consumers want to watch the pay-TV channels of their choice regardless of where they live or travel in the EU," Competition Commissioner Margrethe Vestager said in a statement."European consumers want to watch the pay-TV channels of their choice regardless of where they live or travel in the EU," Competition Commissioner Margrethe Vestager said in a statement.
"Our investigation shows that they cannot do this today, also because licensing agreements between the major film studios and Sky UK do not allow consumers in other EU countries to access Sky's UK and Irish pay-TV services, via satellite or online."Our investigation shows that they cannot do this today, also because licensing agreements between the major film studios and Sky UK do not allow consumers in other EU countries to access Sky's UK and Irish pay-TV services, via satellite or online.
"We believe that this may be in breach of EU competition rules.""We believe that this may be in breach of EU competition rules."
The European Commission says it considers that the exclusivity clause violates competition rules and allows studios to gain more revenue by dividing up the market for their content on TV or on the internet.The European Commission says it considers that the exclusivity clause violates competition rules and allows studios to gain more revenue by dividing up the market for their content on TV or on the internet.