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ARTICLE · 23 MARCH 2012

Does SARFT Have the Authority to Regulate Movie Ticket Price?

It is reported that SARFT is suspected of abusing its administrative power for fixing the price of movie tickets.

ChinaAntitrust/Competition Law
Liu Jia
Liu Jia

Most recently,a piece of news related to the

Anti-Monopoly Law ("AML")indicates that, the National Development and Reform Commission("NDRC")who is in charge of the implementation of the Price Law and price-related antitrust violation, communicated with the State Administration of Radio, Film, and Television("SARFT")1, for SARFT's proposed draft of Guidance on Further Regulation of Movie Ticket Business("draft Guidance").It is reported that SARFT is suspected of abusing its administrative power for fixing the price of movie tickets.

Fact

On 26 February 2012, the draft Guidance was posted on the internet by a micro-blogger. According to the draft Guidance, SARFT divides the sales market of movie tickets into several districts, and sets the guided price (i.e.highest retail price) of movie tickets for each of the district. It also provides that the movie tickets for theater members and group buyers should not be sold for less than 70% of the listed price.

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