It appears that the Commission is examining clauses in Hollywood film contracts with a number of European TV networks that require the networks to pay the same price on the same preferential terms to all Hollywood studios for movies.
These clauses, the Commission claims, may be violating EU law by eliminating competition between Hollywood studios, and force European consumers to pay inflated prices. They could also prevent independent studios to enter the European market for pay-TV, therefore violating EU competition laws.
The Commission is also investigating whether the duration of certain contracts between European television companies and Hollywood studios is legal.
An initial investigation into the matter was launched by the Commission in 2001, whilst a second followed in 2002. As part of the probes, the Commission has raided a number of EU-based television companies, but has not identified those companies, according to Eubusiness.com and Screendaily.com.