From CGV on the Law on Competition!

According to Article 11 of the Competition Law 2004: "An enterprise is considered to have a dominant market position if it has a market share of 30% or more in the relevant market or has the ability to significantly restrict competition."

In reality, the CGV cinema system holds about a 40% market share. Furthermore, the scale of CGV's cinema network is very large, accounting for 40% of the total number of cinemas. This indicates CGV’s significant ability to restrict competition. Therefore, the conclusion that CGV has a dominant market position is entirely accurate.

So, does CGV violate competition law? The Competition Law does not provide grounds to determine which actions are considered exploitation of a dominant market position for the purpose of causing competition restriction but only lists the violations in Article 13. Only when CGV engages in any of these actions will it be penalized. To be specific:

Prohibitions for enterprises or groups of enterprises having a dominant market position include the following actions:

1. Selling goods or providing services below the entire cost in order to eliminate competitors;
2. Imposing unreasonable purchase or sale prices of goods or services or setting minimum resale prices causing damage to customers;
3. Restricting production, distribution of goods or services, limiting markets, hindering technological and technical development causing damage to customers;
4. Imposing different commercial conditions under similar transactions to create inequality in competition;
5. Imposing conditions for other enterprises to sign purchase or sale contracts for goods or services or forcing other enterprises to accept obligations that are not directly related to the subject matter of the contract;
6. Preventing the market entry of new competitors.

CGV's behavior involves compelling domestic producers to share according to the 45/55 ratio. That is, CGV receives 55% of film screening revenue in the first week, with the percentage gradually decreasing in subsequent weeks.

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