SNAPSHOT | Finas probes cartel claims in film industry; 'retract posts on Unisel response'

The National Film Development Corporation of Malaysia, Finas, is investigating potential cartel activities in the film industry to prevent any single entity from dominating the entire industry chain. Finas CEO Datuk Azmir Saifuddin Mutalib stated that they have not received any official complaints about such cartels, but they are gathering information to assess the alleged issue raised by certain industry players.

Finas emphasized that the presence of cartel elements could lead to a monopoly, contradicting the principles of healthy competition outlined in the Competition Act 2010 and the Malaysian Competition Commission. The main concerns raised by industry players include market dominance by distributors and the possibility of a single entity performing multiple roles in the film industry chain, such as being a distributor, producer, and financier simultaneously.

Finas established three licence categories: production, distribution, and exhibition, with a company not allowed to hold all three licences simultaneously, and a maximum of only two licences being permitted. Industry players have expressed concerns about cross-ownership structures, similar to those found in Hollywood, where a single corporation can have interests in various branches of the industry.

Finas is committed to conducting a comprehensive examination of the matter and ensuring that no single entity dominates the industry chain.