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DBC medier as

22. juni 2005

Journal nr. 3/1120-0100-0966SEK/LOB The Council meeting 22 June 2005

On 22 June 2005 the Danish Competition Council adopted a decision concluding that DBC medier had abused its dominant position under section 11 of The Danish Competition Act and Article 82 of the Treaty on the markets for distribution of films and computer programmes/games to public libraries in Denmark.

DBC medier sells books, music, films, computer programmes/games and talking books to Danish libraries intended for lending. DBC medier has exclusive rights to a considerable part of film- and computer programme titles. The exclusivity means that the libraries are obliged to buy a certain amount of titles from DBC medier.

Public libraries buy materials by means of public procurement. DBC medier makes use of rebates with the conditions that the libraries – when choosing a future distributor within the received tenders – choose DBC medier as distributor of all the different kinds of AV-materials (films, computer programmes, music and talking books) and of both titles with exclusivity to DBC medier and without exclusivity to DBC medier. The rebate system means that if a library chooses one of DBC medier’s competitors as a distributor of lending materials the library will loose the rebate on the materials which the library can only buy from DBC medier due to DBC medier’s exclusive rights.

DBC medier has a dominant position on both the market for distribution of films to public libraries and the market for distribution of computer programmes/games to public libraries.

The Competition Council concluded that there is no natural coherence between the different types of AV-materials, e.g. between music and computer programmes. As a consequence, DBC medier’s “all or nothing” rebates constitute indirect bundling in contravention of section 11 of the Danish Competition Act and article 82(2) of the Treaty.

The Competition Council ordered DBC medier to discontinue making it a condition that the libraries buy all sorts of AV-materials from DBC medier in order to obtain a rebate on films and computer programmes, and that DBC medier discontinues making it a condition that the libraries in order to obtain a rebate on titles to which DBC medier has exclusive rights also buy the titles to which DBC medier does not have exclusive rights.