Argentina: CNDC imposes historic fine on Authors and Composers Association

An investigation carried out by Argentina’s National Commission for the Defense of Competition (CNDC) has led to the historic decision to fine the Argentine Society of Music Authors and Composers (SADAIC) for $42.7 million Argentine pesos (approximately US$1.6 million) for imposing excessive prices for reproduction fees paid by hotels and similar establishments. It is the first fine ever imposed for abusive pricing in the history of Argentina’s competition regulation.

“This measure will imply an improvement in the competitiveness of the tourism sector and make it possible to reduce tariffs charged by authors and composers for secondary reproduction of TV and music content in hotels,” said CNDC president Esteban Greco.

In addition, the CNDC recommended that the Executive Branch establish a new tariff-setting regime for SADAIC, that they may present to hotels for all purposes, without substantially damaging the association’s income from this concept.

The CNDC made an international comparison of the fees paid for the reproduction of musical works in these establishments. The result of the investigation determined that Argentina pays between seven and nine times more than the average of similar countries (namely Chile, Paraguay, Mexico, Colombia, and Venezuela).

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