On Wednesday 22 July, the European Commission approved, subject to conditions, the acquisition of Warner by Paramount, two US groups active in the production and distribution of audiovisual material for the entertainment sector.
Having examined the transaction in the light of the Regulation (2004/139), the European Commission was of the opinion that, in terms of film production, competition would remain sufficient within the European Economic Area (EEA), with studios such as Disney, Universal and Sony, or European studios.
By contrast, as regards film distribution networks, the institution notes the particularly high level of concentration in the EEA that would result from the concentration if Warner’s catalogue were added to that of Paramount, while the latter studio has entered into a structural partnership with Universal through the UIP joint venture.
Accordingly, Paramount has agreed to divest its stake in UIP within 13 months of completion of the concentration. In addition, over 10 years, Paramount will comply with all the following provisions: - it will not enter into any agreement with Universal to co-distribute films in the EEA; - it will not transfer distribution of Warner films to Paramount’s distribution network in the 19 European countries where that network also distributes Universal and Disney films; - in EEA countries where Paramount and Universal do not share the same distributor, it will not transfer distribution of Paramount films to Warner’s distributor where that distributor is the distribution network for Universal and Disney films. (Original version in French by Mathieu Bion)