Paramount must exit Universal film venture within 13 months, then observe 10-year ban on new agreements
The European Commission, the EU’s antitrust authority, said Wednesday that it had cleared the acquisition after determining that enough competitors would remain in film production and streaming across the 27-nation bloc. However, the Commission identified a risk of high concentration in the theatrical distribution market, warning that without remedies the merger could lead to “worse rental and distribution terms for cinema operators, ultimately disadvantaging consumers.”
To address that concern, Paramount agreed to end its European Economic Area stake in United International Pictures, a long-running joint venture with Universal that the studio has used to distribute films in theaters outside North America. The Commission required Paramount to exit the partnership within 13 months of closing the Warner acquisition and barred the company from entering any new distribution agreements with Universal for 10 years.
The EU approval clears a major regulatory barrier for the proposed combination of the two studios, which would reshape the entertainment and media landscape globally, AP reported.