The ACCC expressed concerns about the impact that the proposed acquisition of Blockbuster by Video Ezy may have on the national market for the wholesale purchase of new release DVDs and local markets for the rental supply of DVDs to consumers.
The undertaking places restrictions on Video Ezy purchasing new release DVD titles on an exclusive basis in the rental or retail markets for the next five years.
Video Ezy has also undertaken to implement a comprehensive compliance program for its staff and franchisees to increase awareness of the Trade Practices Act.
The undertaking adequately addresses concerns over Video Ezy’s ability to use any upstream buying power gained as a consequence of the acquisition to the detriment of competition in the rental market.
The undertaking also lessens concerns relating to the possibility of coordinated conduct post acquisition.
A Public Competition Assessment will be issued in relation to the proposed acquisition.