US sues to block National CineMedia deal for Screenvision

The Justice Department sued to stop National CineMedia's planned $375 million purchase of its closest competitor to prevent it from controlling advertising for nine of 10 movie screens in the US.

National CineMedia, the largest supplier of commercials in movie theaters, said in May it was merging with Screenvision Cinema Network, pending regulators' approval. The Justice Department claims in its antitrust complaint that CineMedia responded to an increase in Screenvision's market share by buying its only real competitor. The US asked the court for an order blocking the deal and allowing companies that show films to rescind any contracts or contract extensions reached with National CineMedia and Screenvision since the proposed transaction was announced.