The European Commission’s Battle Over Pay-TV Services: Can Segmenting the EU Market Be Justified?* Yesterday the European Commission issued a Statement of Objections to Sky UK and six major US film studios, taking the preliminary view that restrictions put in place to prevent consumers located elsewhere in the EU from subscribing to pay TV services amount to a breach of competition law. The question is whether these entertainment companies can respond with a real justification for dividing the market for European Pay TV services along national lines. The Problem At the heart of this case lies the single market imperative; the elimination of obstacles to free movement within the internal market. The European Commission and Community courts apply EU Competition Law to prevent markets
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