European DVD prices investigated

 

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Posted on 11 Jun 2001 at 17:15

A transcript of a speech given by Mario Monti, European Commissioner for Competition Policy, suggests the EC will be investigating the pricing of region-coded DVD discs.

At issue is whether the coding is allowing "the film production companies to charge higher DVD prices in the EU because EU consumers are artificially prevented from purchasing DVDs from overseas."

The investigation follows several consumer complaints on the matter. Mr Monti says the EC has already contacted a number of film production companies and while it is aware that the region coding is in position to protect intellectual property rights, "it is concerned that such a system could be used as a smoke-screen to allow firms to maintain artificially high prices or to deny choice to consumers".

The Australian Competition and Consumer Commission has already made its own investigation and found that the regional coding system imposes a "severe restriction of choice" on consumers.

The speech also mentioned MusicNet and Duet - the major music labels' online subscription services - as possible bones of contention. However, how one would oppose or regulate an Internet-based distribution service from a geographically limited power is anyone's guess.

Author: Matt Whipp