The Competition Authority has today annulled the acquisition by Myndform ehf. of a 50% stake in Þrjúbíó ehf. from Sena ehf. Þrjúbíó has operated Háskólabíó for the past three years and, during that time, has been owned by Sena, which also operates, among others, Smárabíó and Regnbogann. Myndform, on the other hand, operates Laugarásbíó. The acquisition would therefore have resulted in Sena and Myndform jointly operating Háskólabíó.
The Competition Authority has concluded that the parties in question, namely Sena and Myndform, which operate in the market for cinema screenings, are in a jointly dominant position with Samfélag ehf., which operates the Sambíóin cinemas. A joint dominant position allows the companies concerned to coordinate their behaviour in the market without having to take competitors or consumers into account. Such companies are in a position to limit competition, increase prices, or reduce services. The Competition Authority considers that Myndform's purchase of a 50% stake in the operation of Háskólabíó from Sena is likely to strengthen the combined dominant market position of the three cinemas in the capital region and cause a competitive harm to consumers.
During the proceedings, the Senate expressed a desire to discuss whether the merger could be authorised with conditions instead of being annulled. The Senate's proposals for possible conditions were taken into consideration. However, the Competition Authority concluded that these would not be sufficient to eliminate the merger's harmful effects on competition. The merger is therefore annulled.
See the decision for details No. 15/2009.
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