MM Grupp Challenges Lithuanian Competition Authority Decision on Cinema Acquisition

On October 6, 2026, the Lithuanian Competition Authority rejected an application by MM Grupp OÜ (MMG) to acquire the Vilnius Akropolis cinema, a move that has set the stage for a legal challenge by the company. The decision, which was not in line with established European cinema market practices, has raised concerns among industry observers.

According to the press release, MMG believes the Authority's decision is flawed because it treated Hollywood films as a separate market from other films and cinemas located in shopping malls as a separate market from those operating outside shopping malls. MMG also argues that the Authority did not adequately consider the positive impact of Apollo cinema's entry into the Vilnius cinema market in 2021, which increased competition and benefited consumers. The company maintains that if the decision stands, the Vilnius Akropolis cinema could potentially be transferred to Forum Cinemas, a move that would increase market concentration and could take years to resolve through court proceedings.

The decision to reject the application is part of a broader dispute between MMG and the Lithuanian Competition Authority, which is pending in the country's courts. The main issue concerns MMG's acquisition of Vilnius Akropolis and Kaunas Akropolis cinemas, as well as the change and retroactive application of the Authority's previous practices. MMG has already transferred both acquired cinemas to the company, with Vilnius Akropolis currently being operated by MM Grupp OÜ. In the case of Kaunas Akropolis, the transaction was reversed to mitigate risks.

In a related development, the Lithuanian Competition Authority imposed a 7.5 million euro fine on MM Grupp OÜ for acquiring the Vilnius Akropolis and Kaunas Akropolis cinemas without the required merger clearance.

The outcome of the legal proceedings remains uncertain, with the final decision potentially taking years to reach. MMG has expressed its belief that the risk of the cinema being transferred, as described on pages 26-27 of the prospectus, is unlikely. However, the company acknowledges that the decision has not entered into force, and the ultimate ownership of the Vilnius Akropolis cinema depends on the final outcome of the court proceedings.

The ongoing legal battle highlights the complexities and challenges faced by companies in the highly regulated and competitive Lithuanian cinema market. The dispute could have far-reaching implications for the future of cinema ownership and operations in the region.