The International Union of Cinemas (UNIC), which represents cinema associations and operators across 39 European territories, has criticized the European Commission’s approval of the Paramount–Warner Bros. merger, arguing the regulator assessed the deal with “too narrow a scope.”
UNIC’s response and calls for stronger remedies
UNIC welcomed one element of the Commission’s decision: the requirement that Paramount cancel its film distribution partnership with Universal in Europe within the next 13 months. Still, the union’s chief executive, Laura Houlgatte, said the regulator should have imposed more far‑reaching conditions. “We strongly believe that the Commission could and should have gone further with its conditions for the merger’s approval,” she said.
“The sector raised numerous concerns with its competition department about the proposed deal, and the Commission’s findings don’t reflect that bigger picture,” Houlgatte added. “It has based its decision on too narrow a scope.”
Specific risks UNIC says remain unaddressed
Houlgatte listed several areas where UNIC believes the merger could harm cinemas and the broader audiovisual ecosystem, including theatrical distribution arrangements outside the UIP territories, 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.”
Evidence submitted and concerns about wider implications
UNIC was among the parties that provided evidence to the Commission about the $110.9 billion deal and its potentially negative impact on the sector.
Houlgatte also expressed disappointment that the independent advisory European Media Board did not examine the merger’s “wider implications” and its potential knock‑on effects on media pluralism, cultural diversity and the audiovisual market.
The Commission’s conditions of approval
The European Commission’s approval includes specific restrictions on Paramount’s distribution activities. Among other measures, the ruling prevents Paramount from co‑distributing films with Universal in the European Economic Area and bars Paramount’s distributor from handling Warner Bros. films in countries where it already distributes Universal or Disney titles.
UNIC says those steps do not fully address the broader competitive and cultural concerns it raised, and the union intends to monitor further developments closely.
