Market Overview

EU Regulators Shift Antitrust Focus From Silicon Valley To Hollywood

Share:
EU Regulators Shift Antitrust Focus From Silicon Valley To Hollywood

The European Union's overhaul of the region's digital market has seen many major US tech companies come under fire. Facebook Inc (NASDAQ: FB) is being questioned about its privacy policy, Google Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) has been accused of anticompetitive behavior and Amazon.com, Inc. (NASDAQ: AMZN)'s eBooks market has been under the microscope.

Now, the region's regulators are turning their attention to film studios, saying that some firms' licensing agreements have stood in the way of cross-country markets.

Geo-Blocking

EU regulators allege that several U.S. film studios' agreements with Sky UK Ltd keep the broadcaster from providing access to certain types of content outside of the UK and Ireland. The regulators claim that the use of geo-blocking, or restricting access to content depending on a user's location, violates the region's anticompetitive laws.

Related Link: Universal's "Brilliant" Minions Strategy Was Worth $115 Million, But Will It Last?

Disney Fights Back

Six U.S. firms have been under fire for restricting content:

  • Walt Disney Co (NYSE: DIS)
  • Comcast Corporation (NASDAQ: CMCSA)
  • Viacom, Inc. (NASDAQ: VIAB)
  • Sony Corp (ADR) (NYSE: SNE)
  • Twenty-First Century Fox Inc (NASDAQ: FOX)
  • Time Warner Cable Inc (NYSE: TWC)

Time Warner and Comcast have agreed to cooperate with the EU investigation, but Disney released a combative statement following news of the accusations saying that the company's agreement with Sky supports local industries and benefits consumers. Disney went on to say that it was opposed to the EU's intervention and that changing the way the agreements were structured would hurt consumers the most.

Image Credit: Public Domain

Posted-In: Hollywood Silicon Valley Sky UK LtdEurozone Top Stories Markets Tech Best of Benzinga

 

Related Articles (AMZN + CMCSA)

View Comments and Join the Discussion!