US Justice Department strikes down landmark “Paramount Decree” after seventy years

As part of his review of legacy antitrust decisions (up next is a 1941 music royalties decree) since his appointment in 2017, Makan Delrahim, the chief of the United States Department of Justice’s antitrust division, struck down the Paramount Decree, according to the Financial Times. The 1948 competition case began as a 1938 price-fixing and monopolization lawsuit against eight Hollywood film companies; the outcome regulated the divestiture between distribution and theater ownership, as well as the practice of studios dictating minimum ticket prices. Delrahim told an American Bar Association antitrust conference in Washington online streaming services have changed exhibition over the last eighty years, but the Independent Cinema Alliance says this move will hurt smaller theater chains.