Spanish competition authority CNMC fined collection association SGAE €6.4 million ($6.9 million at current exchange rates) for anti-competitive behavior in licensing deals with radio and television stations.
The problem is that SGAE uses a flat-rate license fee for the use of its music and audiovisual tracks. this China Nonferrous Metals Group Said in a press release last week (June 26) SGAE The way rates are designed forces most broadcasters to accept “average availability rates”.
CNMC said the use of flat rates prevents operators from receiving rates based on the music they actually use and limits their incentives to consider SGAE competitors. If a broadcaster signs an agreement with a competing licensing organization and uses that competing group’s music, it will still have to pay the same fees to SGAE.
CNMC also sanctioned SGAE for presenting its music tracks to users as “generic” and “guaranteeing indemnification against possible claims made by third parties for the use of rights that do not belong to its tracks.”
The investigation into SGAE began following a complaint from the entity Audiovisual Media Copyright, Management Entity (Dharma), and unison“, China Nonferrous Metals Group said.
“The CNMC once again concluded that SGAE distorted competition and prevented or hindered new players from entering the downstream licensing market of broadcasting entities, thereby resulting in two very serious infringements of abuse of dominant position.”
unison
Unison said it lodged a complaint against SGAE in 2016, accusing the charging society of “abusing its dominant position” by using “fixed” fees or availability charges in downstream TV and radio markets and by licensing its programmes.
Unison said in a separate press release: “The CNMC has once again concluded that SGAE distorts competition and prevents or impedes the entry of new players into the downstream licensing market for broadcasting entities, resulting in two very serious infringements of abuse of a dominant position. “
In addition to the fine, SGAE was ordered to cease the infringement. The CNMC has also agreed to apply to the SGAE for a ban on entering into contracts with public administrations, the duration and scope of which will be determined by the Spanish National Public Procurement Advisory Council.
This is the second time SGAE has been fined by CNMC for obstructing competition. In 2019, Unison played an important role in lobbying the CNMC to fine SGAE 2.95 million euros Abusing its dominant position in the Spanish music rights market. In the same year, SGAE was kicked out CISACThe International Federation of Societies of Authors and Composers launched the action after publishers complained about “discriminatory treatment of rights holders and unfair practices related to the distribution of royalties”.
Meanwhile, the latest development is spanish Highest court Another case against SGAE is currently under review. Unison said it had lodged a claim for losses resulting from the complaint and, as of February 16, 2024, SGAE had been ordered to compensate Unison for the losses caused.
“Through this new resolution, CNMC has confirmed that SGAE has been abusing its dominant position since 2016 by erecting and maintaining significant barriers to entry for new operators. Specifically, CNMC has confirmed that SGAE has been in upstream operations between 2016 and 2018. market and anti-competitive behavior in downstream markets from at least 2019 to the present,” Unison said.
Unison is a private music rights management company based in Barcelona and operates as an independently managed entity under Spanish intellectual property law. As Spain’s first private music rights management company, Unison says its goal is to bring transparency and fairness to the management of authors’ rights.
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