OFT REVIEWS FILM DISTRIBUTORS ORDERS AND UNDERTAKINGS

Orders covering the distribution of films are to be reviewed by the OFT.

The Orders and undertakings followed reports by the then Monopolies and Mergers Commission (now the Competition Commission) and were designed to remedy restrictions on competition. These reviews are the beginning of a programme of reviews of Orders and undertakings imposed under the monopoly provisions of the Fair Trading Act 1973.

The OFT has a duty to keep such orders and undertakings under review.

Film Orders

The film Orders resulted from MMC monopoly reports in 1983 and 1994 into the supply of films in cinemas, which found that a number of practices of the large distributors and cinema chains restricted
competition.

The Orders ban exclusive agreements between distributors and cinemas which cover more than one film, and prevent distributors from imposing lengthy minimum exhibition periods on cinemas.

The review is expected to be completed by April 2004.

Full details of the Film Orders were given in DTI press notice
96/942 issued on 16 December 1996.

PUBLIC enquiries: 0845 7224499 enquiries@oft.gov.uk OFT reports and consumer information leaflets are available free from: OFT, PO Box 366, Hayes UB3 1XB 0870 6060321 oft@eclogistics.co.uk