June 07^th, 2012

1. Distribution of cine-films 
2. Management and operation of cinemas

Abusive exploitation of economic dependence-Refusal to supply 

Article 2a of L. 703/1977

Finding of infringement

Complainant(s)

TECHNOPOLIS CINE TSAGARAKIS S.A. 

Respondent(s)

ODEON S.A.

Decision of the Hellenic Competition Commission on the complaint (under ref. no. 6697/15.11.07) submitted by the company “TECHNOPOLIS CINE TSAGARAKIS S.A.” against the company under the name “ODEON S.A.”, for violation of the articles 2 and 2a of L. 703/1977, as in force at the time of the infringement.

By its ref. no. 6697/15.11.07, the company under the name “TECHNOPOLIS CINE TSAGARAKIS S.A.”, that operates in the management and operation of cinemas in the prefecture of Heraklion, Crete, submitted to the HCC a complaint against the company under the name “ODEON S.A.”, for infringing articles 2 and 2a of L. 703/1977, as in force at the time of the infringement. The above infringement of article 2 of L. 703/1977, as in force, was rejected by the HCC, with its Decision (no. 429/V/2009), in the absence of ODEON’s dominant position in the film distribution market. The same Decision also rejected the alleged infringement of article 2a of L. 703/1977, as in force. However, the complainant appealed against this latter ruling to the Athens Administrative Court of Appeal, which referred the case back to the Hellenic Competition Commission, holding that the existence of a previous transaction between the complainant and the plaintiff is not a necessary condition for establishing a relationship of financial dependence. 

The allegation of the complainant regarding the infringement of article 2a of L. 703/1977, as in force, was based on the refusal of ODEON S.A. to sell films, mainly films on new release to the complainant.

The Plenary Session of the HCC, unanimously, by its Decision (no. 540/VII/2012):

Found that the company under the name “ODEON S.A.” infringed article 2a of L. 703/1977, as in force.

Obliged the company under the name “ODEON S.A.” to cease the infringements of article 2a of L. 703/1977, as in force, as they are set out in the reasoning of the Decision and omit them in the future.

Obliged the company under the name “ODEON S.A.” to supply on time the company under the name “TECHNOPOLIS CINE TSAGARAKIS S.A” at least of one copy of each film on new release available in the prefecture of Heraklion, on the first day of screening in the prefecture, under reasonable and non-discriminatory commercial terms.

Threatened the above company, that in case of continuation or recurrence of the infringement of article 2a of L. 703/1977, a fine totaling €10.000 for each day of non-compliance to the Decision will be imposed to it.

Appeal.

ACAA 85/2013, ΑCAA 2938/2014