The Lithuanian Competition Council has concluded its investigation into an unnotified merger involving MM Grupp and Forum Cinemas Lithuania, sending a notification of possible legal infringement to the Estonian company.

According to the Statement of Objections, MM Grupp acquired 51% of Forum Cinemas Lithuania from Odeon Cinemas Group, resulting in total control of the company without prior clearance from the Competition Council. This acquisition occurred while the Council was still reviewing MM Grupp's merger notification submitted on March 8, 2021.

The investigation revealed that MM Grupp gained control over Forum Cinemas Lithuania by the end of April 2021, despite the ongoing review process. The review was suspended due to the companies' failure to provide necessary information in a timely manner, leading to the termination of the concentration review procedure in October 2021.

Despite lacking regulatory approval, MM Grupp proceeded to restructure Forum Cinemas Lithuania's business and integrate its cinemas into the Apollo cinema chain. By the end of 2021, MM Grupp, through Apollo Kinas, took control of a cinema in Vilnius and later regained control of the Kaunas cinema.

In April 2023, the Competition Council intervened with interim measures to prevent further integration of Forum Cinemas into MM Grupp's operations, mandating that the company manage the assets in a way that preserves their economic viability and competitiveness.

The Mergers Supervision Group has proposed that MM Grupp be fined for violating competition laws by failing to notify the Council of the merger. The company may also be required to cease its infringement or restore the previous situation regarding the cinemas in Vilnius and Kaunas.

Interested parties have the opportunity to present their arguments before the Competition Council makes a final decision on the matter, which may differ from the current proposal.