CINEMA DEAL
Primedia firm faces fine over film cabal
The Competition Commission is seeking a penalty against market leader Ster-Kinekor for colluding with rival Nu Metro
The Competition Commission is seeking a penalty against Ster-Kinekor for colluding with its closest rival, Nu Metro. The commission said Ster-Kinekor Theatres, a subsidiary of Primedia, and Avusa subsidiary Nu Metro Entertainment engaged in market allocation in lease agreements at Cape Town’s V&A Waterfront. It is unclear whether the commission is seeking 10% of Ster-Kinekor’s annual turnover or of Primedia’s annual turnover as a penalty. Primedia acquired Ster-Kinekor in 2007. In terms of the Competition Act, 10% of annual turnover is the maximum fine that can be levied, suggesting that Ster-Kinekor has not co-operated with the commission. On Friday, the Competition Tribunal said it had set aside two weeks to hear the matter. The hearing begins on May 8 and involves nine witnesses. Nu Metro and Ster-Kinekor are the two largest competitors in the film exhibition market. According to its website, Ster-Kinekor owns more than 60% of the market. The commission initiated the matter in Ma...
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