The Turkish Competition Authority has published a report on
movie cinemas, outlining competition law-related conditions in
different aspects of the sector, such as production, distribution
and screening ("Report"). The report has
been updated to include information about the recent merger of AFM
and MARS and its effect of the sector. Notably, the report comments
on the link between movie cinemas and shopping malls in Turkey.
The Report includes four sections:
General information on
General information about the Turkish cinema sector, with
determinations about production, distribution and screening
markets. The Report notes that there appear to be no
competition-restricting practices in Turkey, such as mandatory
price or quantity restrictions in the production chain.
Movie theaters began to be located in shopping malls from the 2000s
in Turkey, with 71% of movie theaters currently located in shopping
malls. This factor is an increasing issue within competition law
Sector shaping digital
The Report considers transformation of 35mm film to digital copies
and the digital transformation progress. It examines the virtual
print fee system and effects of this system on the Turkish cinema
Notable Court decisions
regarding the cinema sector
The Report considers important decisions from the United States,
European Union and Turkey. It particularly mentions:
Paramount Pictures (United
Acquisitions discussed by English
Warner Bros.-2 (Turkey).
MARS/AFM merger (Turkey).
Sector state after
The Report thoroughly reviews the AFM/MARS decision, making
determinations about the state of the sector after the decision.
The Report observes that growth in screening appears to be moving
in parallel with the growth of the shopping mall sector. The report
notes that movie theaters which will be built in all of the 61 new
shopping mall projects and MARS will operate 33 of these movie
The Report also comments that from the end of 2014, MARS began
operating in the production, distribution and screening markets,
constituting vertical integration. Although this situation worries
some in the sector, a recent Competition Board decision states
there is no proof that MARS has undertaken any
competition-restricting acts while benefiting from this vertical
Please see this link for the full text of the Report
(only available in Turkish).
Information first published in the
MA | Gazette, a fortnightly legal update newsletter produced by
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