The Lithuanian Competition Council has refused to clear the merger involving Estonian company MM Grupp, which operates the Apollo cinema chain, and a cinema acquired from Forum Cinemas Lithuania in Vilnius. As a result, MM Grupp has been ordered to divest one of its two cinemas located in the capital's shopping centres.

The transaction, which was executed in late 2021 without the necessary authorization, was assessed by the Competition Council, which analyzed data from all seven cinemas in Vilnius. The analysis included attendance statistics and various factors influencing cinema attractiveness to consumers.

The Council determined that the merger significantly increased MM Grupp's market share in Vilnius, surpassing 50%. This raised concerns as Apollo became a dominant player among the three major cinemas in the capital's shopping centres, reducing competition.

Before the merger, the cinemas at Akropolis and Outlet were direct competitors, vying for audiences through diverse film offerings, pricing, and service quality. The loss of Forum Cinemas at Akropolis diminished consumer choices and competitive pressure, which are crucial for fostering better prices and services.

Despite MM Grupp's proposed commitments to transfer one cinema screen to an independent operator, the Council found these measures inadequate to restore competition. Consequently, MM Grupp must divest one of its Apollo cinemas within six months, with terms to be agreed upon with the authority.

The decision can be appealed in the Regional Administrative Court within one month. This follows a previous ruling against MM Grupp for taking control of Forum Cinemas without approval, which is currently under appeal.