International Cinema Union Criticizes Europe’s Approval of Paramount-Warner Bros. Merger: ‘It Has Based Its Decision on Too Narrow a Scope’

The International Union of Cinemas has criticized the European Commission’s approval of the Paramount-Warner Bros merger, saying the decision was based on “too narrow a scope.”

The union, known as UNIC, represents the European theater trade, including cinema associations and operators, across 39 territories.

While UNIC welcomed the EC’s requirement for Paramount to cancel film distribution partnership with Universal in Europe in the next 13 months, its CEO Laura Houlgatte said “we strongly believe that the Commission could and should have gone further with its conditions for the merger’s approval.”

“Our sector raised numerous concerns with its competition department about the proposed deal, and the Commission’s findings don’t reflect that bigger picture,” she added. “It has based its decision on too narrow a scope.”

Among those risks, according to Houlgatte, are theatrical distribution arrangements outside the UIP territories as well as “theatrical windows, film diversity, preservation of film output and production pipelines, contractual practices and access to back catalogues.”

“Given that the transaction continues to face legal challenges based on such factors in the United States, it is clear that these broader concerns about the merger remain unresolved and unanswered,” she said. “UNIC will keep a close eye on developments in the U.S. and any potential consequences for Europe.”

UNIC was among the parties who provided evidence to the EC about the $110.9 billion deal and its potentially negative impact on the sector.

Houlgatte noted that UNIC was also disappointed that independent advisory body European Media Board did not examine the “wider implications” of the merger and its knock-on effects on media pluralism, cultural diversity and the audiovisual market.

The EC’s conditions of approval also saw Paramount forbidden from co-distributing films with Universal in the EAA and using Paramount’s distributor to distribute Warner Bros. films where it already distributes Universal or Disney films in certain countries, among other conditions.