The European Commission has unconditionally cleared Dolby’s acquisition of Doremi, who both produce digital cinema servers (DCS). Despite the parties’ high combined shares in DCS, the Commission considered that the transaction would not lead to unilateral effects given the dynamic nature of the market, recent entry by competitors and low switching costs. The Commission also decided that the transaction would not lead to conglomerate effects as the combined entity would have neither the ability nor the economic incentive to foreclose competitors by bundling its DCS with Dolby’s audio solutions.
A CRA team advised Dolby throughout the process.
For the Commission’s press release, please click here.