ASSOCIAZIONE NAZIONALE ESERCENTI CINEMATOGRAFICI LOMBARDA (Conclusion of investigation)
PRESS RELEASE
The Antitrust Authority rules against 25 Milanese cinema operators for concluding a box office ticket pricing agreement
The Antitrust Authority has now completed the investigation that began in June 1998 against 25 Milanese motion picture theatre operators and the Associazione Nazionale Esercenti Cinematografici (ANEC) Lombardia, in relation to a box office ticket pricing agreement. The investigation focused on the Milanese cinemas which screen film premières, of which the cinema operators parties to the agreement have a share of about 73% of the total box office receipts. The Authority considered that this agreement was a restriction on competition, under Section 2(2) of the Antitrust Act, and imposed fines on the 25 cinema operators totalling 2.2 billion lire.
The investigation began following a complaint received from the Consumers' Association, CODACONS, which had produced a copy of a communiqué circulated by ANEC Lombarda announcing the decision taken by virtually all the Milan cinema operators at their meeting on 29th January 1998 to impose a standard basic box office ticket price for their cinemas, raising it from 12,000 to 13,000 lire, and standard price reductions for specific performances and days of the week or for specific categories of cinemagoers.
The investigation showed that the agreement had been implemented, and that it had not only raised the basic price of cinema tickets as from 4th February 1998, but had also led to a reduction in the number of performances for which cheaper box office prices were charged.
In view of the seriousness and the duration of the offences, which began on the date of entry into force of the new pricing system, and is still in force at the present time, and in consideration of the large market share of the parties to the agreement, the Authority has imposed fines on them. In this instance, the fine was set at 5% of the turnover of each cinema operator party to the agreement.
The Authority also ordered the companies concerned to refrain from implementing the agreement and from continuing to commit this statutory offence, forbidding them to conclude any other agreement that might have a similar effect to the one ascertained, and in particular to convene any meetings at which box office ticket prices for their cinemas were discussed.