Antitrust: Commission accepts commitments by Paramount on cross-border pay-TV services

The European Commission has made commitments offered by Paramount legally binding under EU antitrust rules. These address the Commission’s concerns regarding certain clauses in film licensing contracts for pay-TV between Paramount and Sky UK. These clauses prevented Sky UK from allowing EU consumers outside the UK and Ireland to access films via satellite or online. They also required Paramount to ensure that broadcasters other than Sky UK are prevented from making their pay-TV services available in the UK and Ireland. 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. This follows a Statement of Objections the Commission had sent in July 2015 setting out its preliminary view that certain clauses in film licensing contracts for pay-TV between Paramount (amongst other studios) and Sky UK breach EU antitrust rules.