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ARTICLE · 26 MAY 2015

State AGs In The News - May 21st, 2015

Blank Rome
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The U.S. Department of Justice is investigating claims that Regal Entertainment Group, AMC Entertainment Holdings, and Cinemark Holdings have engaged in collusive behavior regarding the allocation of first-run movies.

United StatesConsumer Protection
Doreen Manchester
Doreen Manchester
Aaron R. Lancaster
Aaron R. Lancaster
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ANTITRUST

DOJ Investigates Movie Theaters for Collusion

  • The U.S. Department of Justice is investigating claims that Regal Entertainment Group, AMC Entertainment Holdings, and Cinemark Holdings (collectively, the "Dominant Theaters") have engaged in collusive behavior regarding the allocation of first-run movies.
  • At the root of the investigation is the use of a business practice called "clearances" through which theaters seek exclusive rights from movie studios to show first-run movies within certain geographic areas or zones. Various independent movie theaters have alleged that the Dominant Theaters are using their collective market power to secure clearances for anticompetitive purposes, namely, to block smaller theaters' ability to show the "premium" first-run movies at the same time as the Dominant Theaters in order to preempt competition, and to discourage future independent theater construction in growing markets.

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