• UOKiK voiced reservations about Multikino taking over Cinema 3D.
• Concentration may restrict competition.
• Reservations do not determine the final decision in this matter.

The transaction was reported to UOKiK in July 2018. Multikino operates 31 cinemas in 25 cities, while Cinema 3D owns 12 cinemas in 12 cities.

Having analysed the application, the Office referred the takeover to the second stage of proceedings. It was necessary to conduct a market research in Warsaw and the Tri-City (Gdańsk, Gdynia and Sopot), where business activity of concentration participants overlap.

Based on the analysis and previous court judgements, the Office decided that multiplex cinema chains constitute a separate market from non-chain (independent) cinemas. The first ones are located mainly in shopping centres, they offer a more diverse film repertoire and extensive cinema ticket deals tailored to viewers’ preferences. Non-chain cinemas usually offer cheaper tickets as part of their standard offer compared to chain cinemas. Furthermore, as opposed to chain cinemas with their loyalty programs, in most cases non-chain cinemas do not use any tools at all to optimize their business operations.

In the opinion of UOKiK, chain cinemas compete with each other at the national level as well, where independent cinemas do not pose a threat to them. In order for chain cinemas to be considered competitors, they should be situated approx. 30-minute drive from each other. This is the maximum distance consumers are willing to cover to watch a film.

Market research has shown that concentration can lead to restriction of competition on three local markets, at a distance of 30-minute car drive from Cinema 3D facilities, namely in Gdańsk, Galeria Atrium Reduta in Warsaw and Galeria Młociny in Warsaw, says the President of UOKiK, Marek Niechciał.

14 days to reply

In cases where there is a reasonable probability of significant restriction of competition as a result of concentration, the President of UOKiK expresses its reservations to an enterprise or enterprises participating in concentration. Reservations are well grounded and do not determine the final outcome of the proceedings.

According to the regulations, enterprises have 14 days to reply to these reservations. This deadline may be extended at their request by a further two weeks.

Additional information for the media:

The UOKiK Press Office

Pl. Powstańców Warszawy 1, 00-950 Warsaw

Phone: 22 55 60 430

E-mail: [SCODE]Yml1cm9wcmFzb3dlQHVva2lrLmdvdi5wbA==[ECODE]

Twitter: @UOKiKgovPL