Thursday, 30 July 2015

CCI imposes penalty upon Karnataka Film Chamber of Commerce (KFCC), Karnataka Television Association (KTVA) and Kannada Film Producers

Competition Commission of India has found Karnataka Film Chamber of Commerce (KFCC), Karnataka Television Association (KTVA) and Kannada Film Producers Association (KFPA) in contravention of Section 3 of the Competition Act, 2002. The Informant, an association of viewers within the State of Karnataka, had approached the Commission alleging anti-competitive conduct by various associations in the State of Karnataka in not allowing dubbed content in the form of films and TV serials.
Consequent upon detailed investigation by the Director General, the Commission concluded that the KFCC, KTVA and KFPA, were involved in the practice of preventing the release /telecast of dubbed Films/TV serials in the State of Karnataka. The Commission further found that the prohibition on the exhibition of dubbed content, both films and /or TV programmes, prevents the competing parties in pursuing their commercial activities. This association urged that the dubbed content destroys the local language and culture and deprives the local artists of the opportunities .The Commission found no merit in the justification offered by these erring associations and they were found to be indulging in anti competitive conduct in contravention to the Section 3 of the Competition Act.
Accordingly the Commission directed KFCC, KTVA and KFPA to cease and desist from indulging in practices which were found to be anti- competitive. The Commission took note of its early orders against KFCC where it was found to be acting in an anti –competitive manner. Considering the recurring violation of the provisions of the Act and the complete disregard to the competition law principles by KFCC , the Commission imposed a penalty of  Rs 16,82,204/-(Rupees Sixteen lakh eighty two thousand two hundred and four only)-calculated at the rate of  10% of its average income on KFCC.
Further penalty of Rs 1,74,293/-(Rupees One Lakh Seventy Four Thousand two hundred and ninety three only) and Rs 1,68,124/-(Rupees one lakh sixty eight thousand one hundred and twenty four only)-calculated at the rate of 8% of the average income of KTVA and KFPA, respectively, were imposed on them.


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