BOCA RATON, Fla., Nov. 17, 2015 /PRNewswire/ -- iPic®, a
pioneering industry leader of award-winning night-out entertainment
destinations that include luxury movie theaters and restaurants,
today sued Regal Entertainment (NYSE: RGC) and AMC Entertainment
(NYSE: AMC) charging these two national movie distributors with
anti-competitive activities as part of their ongoing efforts to
illegally prevent the fair distribution of first-run movies to all
theaters for moviegoers across the country.
The litigation, filed in Harris
County District Court in Texas, asks for an injunction order to halt
Regal's and AMC's unfair and anti-competitive business practices.
The complaint seeks to stop the illegal use by Regal and AMC of
their dominant market position to prevent the licensing of
first-run films to iPic® Theaters in Texas in the same market at the same time, or
from licensing a film at all – to inhibit the ability of the
theaters to obtain first-run films and compete fairly.
According to the lawsuit, through their monopolistic behavior,
Regal and AMC have used their dominant market power to illegally
coerce studios to exclude smaller theater chains from being able to
show first-run films on numerous occasions. The complaint recounts
specific examples where Regal and AMC have threatened boycotts of
specific movie studios, and the first-run films they produce, if
smaller theaters – including a Spanish-language theater – were
given licensing rights to such releases. These theater chains have
dominant market power based on their ability to provide numerous
exhibition locations and screens to studios, in any market.
"The boycott forces studios to choose between playing films in
Regal's and AMC's theaters or iPic's theaters, despite their
preference to play the films at all locations," the lawsuit
said.
Nationally, Regal operates 571 locations with 7,357 screens, and
AMC operates 350 locations with 5,031 screens across the U.S. The
three largest theater chains control more than 60 percent of the
market in the U.S. (Regal and AMC, respectively, are first and
second in size), and in numerous geographic zones they typically
control in excess of 70 percent of the theater seats where they
have sought to induce movie studios to boycott smaller theater
chains.
In Houston alone, the three
major exhibitors control 60% of the screens and 69% of the box
office revenue.
The lawsuit alleges that these dominant theater chains are using
high-pressure and unlawful practices to stifle competition, squeeze
smaller theater operators out of business, and prevent them from
ever being able to obtain leases from developers to develop their
operations in certain locations. These same chains have also used
unlawful threats to coerce real estate owners and developers from
signing leases with iPic®, thereby limiting its potential to open
new locations near dominant theater chains' current locations, as
detailed in the lawsuit.
Earlier this year it was reported that the Antitrust Division of
the U.S. Department of Justice has issued civil investigative
demands, or administrative subpoenas, to Regal, AMC, and Cinemark,
among others, for documents and information as part of its
investigation into the issue of these exclusionary boycott
practices and potential violations of federal antitrust laws.
By any industry standard, these smaller theaters are not in
substantial competition with dominant theater chains, yet Regal and
AMC have threatened to boycott studios' films if they licensed the
first-run films to the smaller theaters.
The lawsuit, which can be seen here, describes the
anticompetitive business practices utilized by these dominant
theater chains.
About iPic®
Established through its predecessor in 2006 and headquartered in
Boca Raton, FL, iPic-Gold Class
Entertainment, LLC, (iPic®) is regarded as the nation's
fastest-growing affordable luxury movie theater brand. A pioneering
industry leader, iPic®'s mission is to provide visionary,
entertainment escapes, presenting high quality, chef-driven
culinary and mixology in unique destinations that include premium
movie theaters and award-winning restaurants. iPic® Theaters
currently operates 12 locations with 89 screens in Arizona, California, Florida, Illinois, Maryland, Texas, Washington, and Wisconsin – with new locations planned for
South Florida, Texas, New
Jersey, Connecticut, and
New York. Please visit us at
www.ipic.com.
Media Contact:
Michelle
Soudry
The Gab Group
561-750-3500
msoudry@thegabgroup.com
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/ipic-charges-regal-and-amc-with-multiple-antitrust-violations-injunction-sought-to-prevent-further-anti-competitive-activities-by-dominant-theater-chains-300180544.html
SOURCE iPic