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Cape Town - The Competition Commission wants 10% of Ster-Kinekor's annual turnover over a complaint about market allocation contraventions, the Competition Tribunal announced on Friday.
A hearing is set to begin on Monday, following a complaint initiated in May 2009 involving the two biggest competitors in the film exhibition market.
The Competition Commission submit that Nu-Metro and Ster-Kinekor engaged in market allocation relating to lease agreements at the V&A Waterfront.
"A lease agreement was entered into by Nu Metro with its then landlord Transnet Pension Fund, wherein Nu Metro had an oral right of first refusal in relation to any film exhibition on the Waterfront premises," the Tribinal explained.
"When Nu Metro discovered that there were negotiations with Ster-Kinekor, about the operator also operating at the Waterfront Shopping Complex, Nu Metro filed an interdict at the High Court. Nu Metro and Ster-Kinekor later entered into a settlement agreement, that was subsequently made an order of the court, in which Nu Metro would withdraw its objection to Ster-Kinekor’s lease agreement and that Nu Metro would only show commercial films while Ster Kinekor could only show subtitled or art movies."
It is this arrangement that the Commission submits amounts to market allocation.
