Competition Council approves merger of Cinamon and Forum Cinemas

The Competition Council (KP) has approved the merger between cinema operators Cinamon and Forum Cinemas. Both companies are involved in film screening, snack and beverage sales, venue rental for events, and cinema advertising. Forum Cinemas operates in Riga, while Cinamon operates in Riga and Liepaja.

The KP assessed the merger's impact on competition in the Riga multiplex cinema market. Although effects on advertising, ancillary goods, and venue rental were also considered, the KP did not conduct a separate evaluation for these areas as they are closely linked to film screening.

After analyzing market structure, the KP concluded that competition would not be significantly reduced, despite the loss of direct competition between the two firms. The authority also examined potential coordinated effects but found them not significant.

The KP evaluated three possible market scenarios without the merger: entry of a new operator in the Akropole Alfa premises (deemed unlikely), leaving the premises unused for film screening, or Apollo Kino taking over the space. The latter two scenarios would pose a greater risk of increasing Apollo Kino's market power. Therefore, the KP concluded that the post-merger market structure would be more favorable for competition, as two comparable operators would remain.

The KP allowed the merger as it does not significantly reduce competition or create or strengthen a dominant position in any market in Latvia.