The Georgian Competition and Consumer Agency has completed the investigation in the market of online sale of cinema tickets and found a violation of Article 7 of the Law of Georgia on Competition (Restrictive agreements). According to the decision of the Agency, on both the appellant and the respondent parties - 3 companies, a sanction of more than 1.6 million GEL was imposed.
In particular:
• A single economic entity - "Distribution Company" ("Distribution Company", "Cavea Saburtalo" LLC, "Cavea Gallery" LLC, "Cavea Tbilisi Mall" LLC, "Rustaveli Holding Cinema" LLC, "Amirani" LLC, "Apollo Batumi" LLC) - 1 120 562 GEL
• "Tnet" LLC (100% shareholder TBC Bank Group PLC) - 544,328 GEL
• To "El.Biletebi" LLC (complainant) - 5,368 GEL
Following an investigation, it was determined that an exclusive contract between "Distribution Company" LLC and "Tnet" LLC was in breach of competition legislation. The contract gave Tinet the sole right to sell cinema tickets on their portal tkt.ge. Another company, "El.Biletebi" LLC, was also involved in the transaction and attempted to obtain exclusivity on their portal biletebi.ge.
The court intervened at the start of the investigation and stopped the use of the exclusive condition by the "Distribution Company." This allowed the complainant company to operate in the market before the final decision of the Agency, which created a competitive environment and opened a closed market.
An investigation was conducted against five undertakings. However, it was found that "TBC Bank" and TBC Bank Group PLC did not violate Article 7 of the law od Georgia on Competition, and the violation of Article 6 of the law was not confirmed against "Distribution Company" LLC.
According to the Agency's decision, in order to eliminate the violation of the law, the defendant companies "Distribution Company" LLC and "Tnet" LLC were ordered to remove Article 6 ("Exclusive") of the contract concluded between "Distribution Company" LLC and "Online Tickets" LLC (the legal successor - "Tnet" LLC) ) and must also eliminate any related rights and obligations and bring the contract in line with competition legislation, according to the Agency's decision.
To enhance the online sales market for tickets for cultural, entertainment, creative, sports, leisure, and tourism, as well as educational, transport, and other products/services, three mandatory recommendations have been issued for consideration. These recommendations are as follows: 1. When selecting an undertaking/undertakings for online ticket sales, the process should be implemented in a public, open, and accessible competitive environment. All interested undertakings should have an opportunity to participate in the selection process. Ticket distributors, organizers, and online sellers should conduct their contractual relations in such a way that it does not create an unjustified barrier to enter the market and does not limit the participation of undertakings in the relevant market. If the condition of exclusive supply is used by unavoidable necessity, it must be substantiated with arguments that can become the subject of the Agency's review.
Sanctioned companies have the right to appeal the Agency's decision in Tbilisi City Court.
In 2023, the Agency conducted 8 investigations, which included possible abuse of a dominant position, unfair competition, concerted practice and possible restriction of competition by the state authorities, Out of these, no violation was established in 1 case, the study was stopped at the request of the applicant in 1 case, and a violation was established in 6 cases. The studies covered various markets including auto fuel, tobacco, pharmaceuticals, shipping, online sale of cinema tickets, auto technical inspections, fast food services, and construction/infrastructure services.
Presently, there are 2 ongoing investigations into the auto market and food products markets.
