CCP has written a letter drawing PEMRAs attention to a news item published in The News on 13 January 2011 with reference to Independent Music Group (IMG) having acquired exclusive rights to telecast all Cricket World Cup 2011 matches on cable and satellite under an exclusive agreement with ESPN.
The CCP has informed PEMRA that while PEMRA has withdrawn the said directives however, the Commission in this regard would like to emphasize that such grant of exclusive rights whether pertaining to the agreement in particular, or pursuant to any other agreement prima facie attracts the provisions of Competition Act, 2010 (Act) and would require seeking exemption in terms of Section 4 read with Section 5 and 9 of the Act.
Section 4 prohibits undertakings to enter into any agreement in respect of distribution or provision of services which has the object or effect of preventing, restricting or reducing competition within the relevant market unless exempted under Section 5. Further more, in terms of sub-section 3 of Section 4 such exclusive agreements are void unless exempted by the Commission under section 5 of the Act.
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