It appears that the Commission is examining clauses in Hollywood
film contracts with a number of European TV networks that require
the networks to pay the same price on the same preferential terms
to all Hollywood studios for movies.
These clauses, the Commission claims, may be violating EU law by
eliminating competition between Hollywood studios, and force
European consumers to pay inflated prices. They could also prevent
independent studios to enter the European market for pay-TV,
therefore violating EU competition laws.
The Commission is also investigating whether the duration of
certain contracts between European television companies and
Hollywood studios is legal.
An initial investigation into the matter was launched by the
Commission in 2001, whilst a second followed in 2002. As part of
the probes, the Commission has raided a number of EU-based
television companies, but has not identified those companies,
according to Eubusiness.com and Screendaily.com.
