News Release issued by
the COI News Distribution Service on 03 September 2010
Issues statement
and timetable
The Competition Commission (CC) has today published an issues
statement and timetable for its investigation into movies on Pay
TV. These can be found at:
www.competition-commission.org.uk/inquiries/ref2010/movies_on_pay_tv/index.htm.
Last month Ofcom announced its decision to refer the supply
and acquisition of subscription Pay TV movie rights and the
wholesale supply and acquisition of packages including core
premium movies channels, to the CC for investigation. This
reference follows a three-year study by Ofcom into the Pay TV
market.
The terms of reference defined 'subscription Pay TV
movie rights' as the intellectual property rights
licensed by the six largest Hollywood studios for the first period
during which movies can be exhibited on broadcast channels and/or
subscription video on demand (SVOD) services in the UK.
'Core premium channels' were defined as
Sky's movies channels.
The CC is now carrying out its own comprehensive
investigation to see if any features of each relevant market
prevent, restrict or distort competition and, if so, what action
might be taken to remedy the resulting adverse effects on competition.
The issues statement identifies the key questions being
addressed in the investigation. It does not imply that the Group
has yet identified any competition concerns.
The purpose of the issues statement is to inform all
interested parties about the key questions the CC will be
examining so that they can focus their submissions on those key questions.
The CC is required to report by 3 August 2012, although it
intends to complete the investigation in a shorter period if
possible, and will publish its provisional findings in April next year.
The CC would like to hear from all interested parties about
the issues statement in writing, by 5pm on 24 September 2010. To
submit evidence, please email moviesonpaytv@cc.gsi.gov.uk
or write to:
Inquiry Manager
Movies on Pay TV
Competition
Commission
Victoria House
Southampton Row
LONDON
WC1B 4AD
Notes for editors 1. The CC is an independent public
body, which carries out investigations into mergers, markets and
the regulated industries.
2. Under the Enterprise Act 2002, Ofcom can make a market
investigation reference to the CC if it has reasonable grounds for
suspecting that competition is not working effectively in that market.
3. The members of the Movies on Pay TV investigation are:
Laura Carstensen (Group Chairman and Deputy Chairman of the CC),
Robin Aaronson, Alexander Johnston, Peter Jones and Stephen Oram.
4. In its investigation, the CC is required to decide whether
'any feature, or combination of features, of each
relevant market prevents, restricts or distorts competition in
connection with the supply or acquisition of any goods or services
in the United Kingdom or a part of the United Kingdom'.
If so, then there is an adverse effect on competition and the CC
will also consider whether this is resulting in a detrimental
effect on customers such as higher prices, lower quality or less
choice of goods or services. The CC will then decide whether the
CC should introduce remedies to tackle the adverse effect on
competition or detrimental effect on customers or whether the CC
should recommend action be taken by other bodies to remedy the
adverse effects on competition and, if so, what actions or
remedies should be taken. If the CC finds that there is no adverse
effect on competition, the question of remedies will not arise.
5. The Enterprise Act 2002 requires the CC to consult the
main parties on its proposed decisions and it will also publish
notice of its provisional findings on its website as required by
its rules. Full details on the CC's guidelines for Market
Investigation references are available on the CC website www.competition-commission.org.uk.
6. Enquiries should be directed to Rory Taylor or Siobhan Allen
Contacts:
NDS Enquiries
Phone: For enquiries please contact the above department
ndsenquiries@coi.gsi.gov.uk
Rory Taylor
Phone: 0207 271 0242
Rory.Taylor@cc.gsi.gov.uk
Siobhan Allen1
Phone: 020 7271 0242
Siobhan.Allen@cc.gsi.gov.uk