The Georgian Competition Agency has completed a study of online movie ticket sales, radically changing the market situation

This study began in the spring of 2023 after a complaint from an online platform biletebi.ge , which sells tickets. As a result of an inspection conducted by the Competition and Consumer Protection Agency, a violation of the law "On Competition" in the online ticket sales market in cinemas in Georgia was revealed. Three companies, including the one that filed the complaint, were fined over GEL 1.6 million.

A complaint from the biletebi online platform.ge was targeted against another platform, tkt.ge, as well as its owner, the company "Tineti". In December 2022, the tkt website.ge has signed an agreement with a distribution company and received the exclusive right to online ticket sales in six major cinemas in Georgia.

As a result of the decision of the Competition Agency, the distribution company owning the officially filed lawsuits "Kavea Saburtalo", "Kavea Gallery", "Kavea Tbilisi Mall", "Rustaveli Holding Cinema", "Amirani", "Appolo Batumi" was fined GEL 1,120,562. The company "Tineti" (100% owner of TBC Bank Group plc) received a fine of GEL 544,328, and the company "Electronic Tickets", which filed a complaint, was fined GEL 5,368. It turned out that an agreement had been concluded between the distribution company and Tineti, which gave the exclusive right to sell tickets only on the portal tkt.ge , violated the law "On Competition". All three companies wanted to get the same exclusive right for their portal, biletebi.ge .

The agency noted that the court had already temporarily suspended the right of the distribution company to use the exceptional condition at the initial stage of the study. Thus, the applicant company already had the right to operate in the market, which opened a closed market and created a competitive environment.

During 2023, the Agency completed eight studies, including the markets for automotive fuel, tobacco, pharmaceuticals, shipping, electronic cinema tickets, automotive inspections, fast food services and construction. In one case, no violations were found, in one case the study was terminated at the request of the applicant, and in six cases a violation of the law was revealed.

The respondent companies, the distribution company and Tineti, were ordered to remove Article 6 from the agreement concluded between them and bring it into line with antitrust legislation to eliminate violations. In addition, the Agency has made three mandatory recommendations for improving the online ticket sales market. When choosing a partner, an economic agent or agents for online ticket sales, it is necessary to take into account public, open and accessible competitive conditions, as well as ensure the participation of all interested economic agents in the selection process. Ticket distributors, organizers and online sellers must conduct contractual relations in such a way that they do not create undue barriers to entry into the market and do not limit the participation of economic agents in the relevant market. If the condition of exclusive deliveries is unavoidable, it must be justified by arguments that will be checked by the Agency.

Companies brought to justice have the right to appeal the Agency's decision to the Tbilisi City Court. The National Competition Agency continues to investigate two cases concerning the automotive market and the food market.