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JFTC renders a recommendation to Twentieth Century Fox Japan, Inc. on restriction on admission charge of cinema theaters.

October 8/2003
Japan Fair Trade Commission

The JFTC, having investigated into Twentieth Century Fox Japan,Inc., today issued a recommendation to the firm for the violation of Section 19 of the Antimonopoly Act (Dealing on restrictive term/Article 13 of Designation of Unfair Trade Practices).

1. The firm to receive recommendation

Twentieth Century Fox Japan, Incorporated
10201 Westpico Boulevard
Los Angeles, CA 90064
United States of America

Tokyo Branch:
16-33 Roppongi 3 chome
Minato-ku, Tokyo
Japan

Business: Distribution of films in Japan from Twentieth Century Fox International Corporation in the USA

2. Outline of violation

The JFTC found the fact as follows:

Twentieth Century Fox Japan, Inc., in distributing films from Twentieth Century Fox International to cinema theaters in Japan,restricts the admission charge by deciding its specific amount and requiring prior authorization of discount on the basis of agreements with the firms, which are called "Screening Agreement (Basic Agreement)" and "Supplemental Screening Agreement."

3. The applied section of AMA
Section 19 of the Antimonopoly Act
(Unfair Trade Practices/Dealing on restrictive terms (Article 13 of the Designation of the Unfair Trade Practices)).

4. Outline of measures to be adopted

The JFTC recommends:

(1) Twentieth Century Fox Japan, Inc. to cease the above mentioned activities and to delete the articles which restrict admission charge;

(2) Twentieth Century Fox Japan, Inc. to inform the cinema theaters and consumers of the measures taken according to the (1) above and nonrecurrence of the above mentioned activities in the future;

(3) Twentieth Century Fox Japan, Inc. not to do the above mentioned activities in the future.

4. Due date of acceptance:

23 October 2003

If accepted, the JFTC will issue a decision accordance with the recommendation, if not, initiate hearing procedures.

*Every announcement is tentative translation. Please refer to the original text written in Japanese.


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