The Competition Bureau issued a “no action letter” related the proposed acquisition of Alliance Films Holdings Inc. by Entertainment One Ltd. In a release Jan. 3, the bureau said it was initially concerned by the purchase, in which eOne will purchase all of Alliance’s outstanding shares, because the new entity would be in a position to implement “more restrictive” distribution terms on producers, such as higher distribution fees or reduced minimum guarantees. The bureau noted that to be eligible for funding for Canadian productions, a film producer must use a Canadian distributor. The bureau concluded that “the policies in place affecting the promotion and distribution of Canadian films would make it unlikely that a substantial lessening or prevention of competition for the distribution of Canadian films” would result from the merger. For non-Canadian films, a lessening or prevention of competition is unlikely due to effective competition in the market, the release said.