B3-1639/93

Resolution on renewal of the exemption granted to United International Pictures

The European Parliament,

-having regard to Commission Decision 89/467/EEC authorizing the setting-up of the UIP joint venture between Paramount, MCA and MGM by way of derogation from Article 85(1) of the EEC Treaty,

-having regard to the EC Treaty and in particular Article 128(5) thereof,

A.having regard to the cultural dimension of the film industry,

B.whereas the Commission granted this exemption on the grounds that UIP would have a positive impact on the production and distribution of European films and would give the consumer a greater choice of films of all origins,

C.whereas this exemption favours the above 'majors' (by rationalizing their distribution) to the detriment of European distributors, which is in total contradiction to the Community's determination to strengthen the European audiovisual sector by means of instruments such as MEDIA,

D.whereas the objectives set by the Community for UIP following the acceptance of the exemption (to improve access to films for exhibitors and sustain competition) have not been met and whereas, on the contrary, increased concentration in the film market has led to the disappearance of some European distributors (who, as a rule, tend to be smaller) and to a reduction in the overall supply of films on the market (to the detriment of European and national film production),

E.whereas, in a number of Member States, UIP has a dominant position in the film distribution market and whereas this has indirectly encouraged 'the majors' to adopt practices such as 'block booking' and 'blind booking' which adversely affect the freedom of choice of distributors and cinema-goers alike,

F.whereas the UIP joint venture has not been authorized in the United States,

G.whereas the expiry date for this exemption was 26 July 1993 and UIP has applied for its renewal,

1.Points out that the objectives of the European audiovisual policy are to encourage the European industry and to improve access to all such works for everyone;

2.Calls on the Commission not to renew this exemption;

3.Instructs its President to forward this resolution to the Council and the Commission.