Cineplex Group accused of unfair business practices
Cineplex Group accused of unfair business practices
Damar Harsanto, The Jakarta Post, Jakarta
An antimonopoly watchdog filed a complaint with the Business
Competition Supervisory Agency (KPPU) over alleged unfair
business practices by the 21 Cineplex Group, whose majority
shareholder is tycoon Sudwikatmono, a cousin of former president
Soeharto.
"We've found indications that the 21 Cineplex Group has abused
its power as a dominant force in the market and barred other
competitors from entering the market," said Samuel Nitisaputra,
executive secretary of non-governmental organization Monopoly
Watch.
Samuel alluded to some of the indications such as Cineplex's
status as the sole agent in the country to import and distribute
foreign films as well as to set movie ticket prices.
"The group often prioritizes movies to be screened at their 21
Cineplex chains first. After all of its outlets get their turn,
other cinemas can then screen them," Samuel remarked, adding that
such a practice resulted in other cinemas obtaining low admission
rates as the movies they screen are old ones.
Monopoly Watch reported that in the course of two years, from
July, 2000 to June 2002, 19 movie theaters in seven cities were
closed due to bankruptcy including Kencana theater in Plaza
Cipulir, South Jakarta, Nelayan theater on Jl. Tegal Alur, West
Jakarta, and Johar Baru theater in Johar Baru, Central Jakarta.
Samuel also revealed that the movie chain firm controlled a
100 percent stake in Jambi, Batam in Riau, Denpasar in Bali,
Balikpapan and Samarinda in East Kalimantan, and Manado in North
Sulawesi. Besides, it also controls the lion's share of the movie
market in big cities like Jakarta (61 percent); Bandung, West
Java (77 percent); Surabaya, East Java (91 percent).
Meanwhile, KPPU executive director M. Nawir Messi revealed
that his commission was still gathering information on the issue.
"We will take 10 days to study the report, while collecting
information from other sources. Then, when the evidence is
sufficient, we will determine what the next step will be," said
Nawir, who also led the team.
Nawir said that his commission would monitor intensively
Cineplex's business practices to determine whether or not it was
guilty of unfair business practices.
"However, if the evidence is sufficient, we could proceed with
further investigation in which the commission could summon the
firm for a hearing," said Nawir.
According to Antimonopoly Law No. 5, 1999, those violating the
law are subject to a fine of between Rp 5 billion and Rp 100
billion or a six-month prison sentence.