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ARTICLE · 16 MARCH 2011

European Commission Drops Investigation Into Hollywood Studios

SJ Berwin LLP
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The European Commission ('Commission') has decided to close its preliminary investigation into the conduct of several major Hollywood film studios, including Paramount and 20th Century Fox.

European UnionAntitrust/Competition Law
SJ Berwin'S EU & Competition Team
SJ Berwin'S EU & Competition Team

The European Commission ('Commission') has decided to close its preliminary investigation into the conduct of several major Hollywood film studios, including Paramount and 20th Century Fox, after they revised the terms of their agreements for the financing and installation of digital projection equipment in European cinemas.

The Commission's investigation focussed on the contracts between the major Hollywood film studios and third party integrators (intermediaries who install the digital equipment in the cinemas) under Article 101 TFEU.  The investigation was triggered by concerns in relation to the use of a US-style business model (called virtual print fee ('VPF')) with integrators to the apparent detriment of smaller distributors of independent and art-house films across Europe. 

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