Economic Competition Commitments
Derived from the COFECE resolution dated September 27, 2018, and accepted by the Company on October 22, 2018.
Waiver of Exclusivity for Future Operators and Promoters
NOTICE TO OUR CUSTOMERS
Mexico City, October 22, 2018
Dear Customer,
Since its founding, Corporación Interamericana de Entretenimiento, S.A.B. de C.V. ("CIE" or the "Company") has focused on developing out-of-home recreation and entertainment products and services that meet the highest standards of quality. Throughout the Company’s history and development, CIE has been characterized by generating and subsequently transforming the out-of-home entertainment offerings in Mexico, constantly seeking to adapt to market conditions and innovate within market trends.
CIE’s business model is based, among other things, on the efficiencies enabled by combining efforts, generating opportunities, and pooling resources across its different business areas and divisions. CIE considers this model operationally sound, economically functional, and unequivocally beneficial for generating offerings and value for its clients and consumers.
Confident in the foregoing, and with the objective of fostering greater competition in the industry in which it participates, CIE hereby informs you of the commitment offered to and acquired by itself and certain of its subsidiaries before the Federal Economic Competition Commission for a term of 10 (ten) years (the "Commitment"). This commitment ensures, among other things, that in future ticketing service agreements entered into by Venta de Boletos por Computadora, S.A. de C.V. ("VBC") or any current or future subsidiary of CIE with [a] third-party owners and operators of venues unaffiliated with CIE, and [b] third-party promoters of live public entertainment unaffiliated with CIE, regarding events to be held in venues unaffiliated with CIE or any of its subsidiaries, they will not establish:
- (i) clauses that impose on VBC's counterparty(ies) the obligation to hire VBC or any of CIE's subsidiaries in Mexico for the sale or marketing of tickets for the event(s) to be held at the venue(s) in question, as applicable under the scope of the respective agreement;
- (ii) clauses that impose on VBC's counterparty(ies) conventional penalties or any other type of sanction for using a ticketing system or ticketing service other than those of VBC or any of CIE's subsidiaries in Mexico for the sale or marketing of tickets for the event(s) to be held at the venue(s) in question, as applicable under the scope of the respective agreement;
- (iii) clauses that impose on VBC's counterparty(ies) the obligation to offer a right of first option and/or preference to VBC, or any of CIE's subsidiaries in Mexico, over other ticketing service providers to renew the contractual relationship;
- (iv) clauses that establish automatic renewal rights upon the expiration of the agreements; and
- (v) clauses that establish the obligation of VBC's counterparty to guarantee that no agreement exists or is entered into with third parties outside the corporate group headed by CIE regarding ticket marketing.
Furthermore, the following express statement will be included in the agreements: "This agreement is not subject to any exclusivity right regarding the provision of the ticketing services to which it refers."
In accordance with the commitments undertaken before the Federal Economic Competition Commission, VBC, or any current or future subsidiary of CIE, will not include the aforementioned clauses in future agreements with third parties for a term of 10 (ten) years, starting from October 23, 2018.
Regarding existing agreements entered into by VBC or any CIE subsidiary, they have been adjusted to remove exclusivity-related clauses that could restrict competition in the provision of ticketing services to third parties.
It is the policy of CIE, VBC, and CIE's subsidiaries and/or affiliates to conduct all their activities in strict compliance with the law, including the Federal Economic Competition Law and its Regulatory Provisions. CIE, VBC, and CIE's subsidiaries and/or affiliates believe that the commitments undertaken before the Federal Economic Competition Commission promote and reinforce the process of competition and free market participation in the live entertainment market in Mexico.
We will continue to work hard to provide the best service to our customers, and we thank you once again for your continued business.
Waiver of Exclusivity in Current Agreements with Owners, Operators, and/or Programmers
NOTICE TO OUR CUSTOMERS WHO ARE VENUE OWNERS, OPERATORS, AND/OR PROGRAMMERS
Mexico City, October 22, 2018
Dear Customer,
Since its founding, Corporación Interamericana de Entretenimiento, S.A.B. de C.V. ("CIE" or the "Company") has focused on developing out-of-home recreation and entertainment products and services that meet the highest standards of quality. Throughout the Company’s history and development, CIE has been characterized by generating and subsequently transforming the out-of-home entertainment offerings in Mexico, constantly seeking to adapt to market conditions and innovate within market trends.
CIE’s business model is based, among other things, on the efficiencies enabled by combining efforts, generating opportunities, and pooling resources across its different business areas and divisions. CIE considers this model operationally sound, economically functional, and unequivocally beneficial for generating offerings and value for its clients and consumers.
Confident in the foregoing, and with the objective of fostering greater competition in the industry in which it participates, CIE hereby informs you of the commitment offered to and acquired by itself and certain of its subsidiaries before the Federal Economic Competition Commission for a term of 10 (ten) years (the "Commitment"). This commitment involves—among other things—waiving, and therefore rendering null and void and considering removed, the exclusivity clauses contained in the ticketing service agreements for access to live public entertainment that Venta de Boletos por Computadora, S.A. de C.V. ("VBC") may have signed with third-party venue owners, operators, and/or programmers, including the following:
- (i) clauses that impose on VBC's counterparty(ies) the obligation to hire VBC or any of CIE's subsidiaries in Mexico for the sale or marketing of tickets for the event(s) to be held at the venue(s) in question, as applicable under the scope of the respective agreement;
- (ii) clauses that impose on VBC's counterparty(ies) conventional penalties or any other type of sanction for using a ticketing system or ticketing service other than those of VBC or any of CIE's subsidiaries in Mexico for the sale or marketing of tickets for the event(s) to be held at the venue(s) in question, as applicable under the scope of the respective agreement;
- (iii) clauses that impose on VBC's counterparty(ies) the obligation to offer a right of first option and/or preference to VBC, or any of CIE's subsidiaries in Mexico, over other ticketing service providers to renew the contractual relationship;
- (iv) clauses that establish automatic renewal rights upon the expiration of the agreements; and
- (v) clauses that establish the obligation of VBC's counterparty to guarantee that no agreement exists or is entered into with third parties outside the corporate group headed by CIE regarding ticket marketing.
VBC has carried out or is currently carrying out the appropriate procedures to formalize the Commitment.
It is the policy of CIE, VBC, and CIE's subsidiaries and/or affiliates to conduct all their activities in strict compliance with the law, including the Federal Economic Competition Law and its Regulatory Provisions. CIE, VBC, and CIE's subsidiaries and/or affiliates believe that the commitments undertaken before the Federal Economic Competition Commission promote and reinforce the process of competition and free market participation in the live entertainment market in Mexico.
We will continue to work hard to provide the best service to our customers, and we thank you once again for your continued business.
Waiver of Exclusivity in Current Agreements with Event Promoters
NOTICE TO OUR CUSTOMERS WHO ARE EVENT PROMOTERS
Mexico City, October 22, 2018
Dear Customer,
Since its founding, Corporación Interamericana de Entretenimiento, S.A.B. de C.V. ("CIE" or the "Company") has focused on developing out-of-home recreation and entertainment products and services that meet the highest standards of quality. Throughout the Company’s history and development, CIE has been characterized by generating and subsequently transforming the out-of-home entertainment offerings in Mexico, constantly seeking to adapt to market conditions and innovate within market trends.
CIE’s business model is based, among other things, on the efficiencies enabled by combining efforts, generating opportunities, and pooling resources across its different business areas and divisions. CIE considers this model operationally sound, economically functional, and unequivocally beneficial for generating offerings and value for its clients and consumers.
Confident in the foregoing, and with the objective of fostering greater competition in the industry in which it participates, CIE hereby informs you of the commitment offered to and acquired by itself and certain of its subsidiaries before the Federal Economic Competition Commission for a term of 10 (ten) years (the "Commitment"). This commitment involves—among other things—waiving, and therefore rendering null and void and considering removed, the exclusivity clauses contained in the ticketing service agreements for access to live public entertainment that Venta de Boletos por Computadora, S.A. de C.V. ("VBC") may have signed with third-party promoters of live public entertainment (excluding agreements entered into with subsidiaries and related parties of CIE, provided that third-party venues do not have an exclusivity agreement in place with another ticketing company that prevents or restricts the use of the systems of CIE or any of its subsidiaries), including the following:
- (i) clauses that impose on VBC's counterparty(ies) the obligation to contract VBC or any of CIE's subsidiaries in Mexico for the sale or marketing of tickets for the event(s) promoted or organized by the User, in venues other than those owned, leased, managed, operated, and/or whose programming is managed by VBC and/or its parent companies and/or subsidiaries, as applicable under the scope of the respective agreement;
- (ii) clauses that impose on VBC's counterparty(ies) conventional penalties or any other type of sanction for using a ticketing system or ticketing service other than those of VBC or any of CIE's subsidiaries in Mexico for the sale or marketing of tickets for the event(s) promoted or organized by the User, in venues other than those owned, leased, managed, operated, and/or whose programming is managed by VBC and/or its parent companies and/or subsidiaries, as applicable under the scope of the respective agreement;
- (iii) clauses that impose on VBC's counterparty(ies) the obligation to offer a right of first option and/or preference to VBC, or any of CIE's subsidiaries in Mexico, over other ticketing service providers to renew the contractual relationship;
- (iv) clauses that establish automatic renewal rights upon the expiration of the agreements; and
- (v) clauses that establish the obligation of VBC's counterparty to guarantee that no agreement exists or is entered into with third parties outside the corporate group headed by CIE regarding ticket marketing.
VBC has carried out or is currently carrying out the appropriate procedures to formalize the Commitment.
It is the policy of CIE, VBC, and CIE's subsidiaries and/or affiliates to conduct all their activities in strict compliance with the law, including the Federal Economic Competition Law and its Regulatory Provisions. CIE, VBC, and CIE's subsidiaries and/or affiliates believe that the commitments undertaken before the Federal Economic Competition Commission promote and reinforce the process of competition and free market participation in the live entertainment market in Mexico.
We will continue to work hard to provide the best service to our customers, and we thank you once again for your continued business.