Superintendent suggests the clearing of the partnership between Warner and Fox
The General Superintendent of CADE issued, this Tuesday 16th, an opinion calling for the clearing of the partnership between Fox and Warner for the distribution of feature films. The partnership aims to share the costs of film distribution. The transaction does not include the activity of film production, except for the possibility of joint participation of the two companies in national productions, through the use of incentives of the Brazilian Audiovisual Law.
In two particular markets - acquisition of rights for film distribution and production of national films - it was found that the parties’ joint market share was not relevant. In the market for feature films distribution, no significant anticompetitive concerns were identified, despite the resulting market share of slightly above 20% . The Superintendence found that the competition posed by other major and independent distributors drives away any risk to consumers.
This is one of the last cases still analyzed under the former antitrust law, which was replaced by a new legislation last May.
A final decision on the merger will be taken by CADE’s Tribunal.