Why SARFT’s Order for Price Limit on Movie Ticket Daily Deal Is Illegal?

As reported, the State Administration of Radio, Film & Television (“SARFT”) has issued the Exposure Draft of “The Guideline on The Further Regulation of The Movie Tickets Management” (the “Exposure Draft”) to its affiliated industry associations, which says that the price of the member ticket, group ticket and the preferential ticket shall not be less than 70% of the listed price in the cinema. The regulation has aroused wide argument for it focusing on the heating ticket group buying business. In our opinion, the Exposure Draft is to establish the price cartel, which is suspected to violate the Price Law, Anti-trust Law and Anti Unfair Competition Law. And the following is the opinions from Bridge IP Law Commentary: (the image above is the logo of NUOMI.COM, the first daily deal website selling movie ticket in China)