EU accepts Paramount's commitments on cross-border pay-TV services

The European Commission said on Tuesday it accepted commitments offered by Paramount on suspension of certain clauses in film licensing contracts, in a bid to allow more audience to access films broadcast by British largest pay-TV broadcaster Sky UK.

These clauses prevented Sky UK from allowing EU consumers outside Britain and Ireland to access films via satellite or online as well as required Paramount to ensure that broadcasters other than Sky UK are prevented from making their pay-TV services available in Britain and Ireland, said a statement issued by the commission.

The commission sent a statement of objections in July 2015 setting out its preliminary view that the clauses breach EU antitrust rules.

Paramount has now committed that it will neither act upon nor enforce these clauses in existing film licensing contracts for pay-TV with any broadcaster in the European Economic Area (EEA). It has also committed to refrain from (re)introducing such clauses in film licensing contracts for pay-TV with any broadcaster in the EEA.

The commitments will apply throughout the EEA for a period of five years, the statement said.

In July last year, the commission also sent a statement of objections to five other film studios, namely Disney, NBCUniversal, Sony, Twentieth Century Fox and Warner Bros, expressing similar concerns.

The commission said its investigation continues regarding the five other studios. Enditem