CCI rules out cartelisation, abuse of dominance by multiplexes

Fair trade regulator CCI dismissed charges of cartelisation and abuse of dominance by the Multiplex Association of India, as it did not find any evidence to this effect pursuant to a probe into such charges levelled by the film producers.

The complaint was filed before the Competition Commission of India (CCI) by the producers through Film and Television Producers Guild of India (FTPGI), which alleged that MAI and its 14 members force the producers to accept their own terms with a threat of not exhibiting the film in their multiplexes.

The members of the the Multiplex Association of India (MAI) include PVR, DT Cinemas, Reliance MediaWorksBSE 0.31 %, Inox LeisureBSE 0.06 %, CinemaxBSE -0.63 % and Satyam Cineplexes.

CCI said in an order passed that it did not find any cartelisation among the multiplex operators, although a probe by its investigation arm had found indications of multiplex theatre operators "acting like a cartel under the banner of MAI".

As per the producers' complaint, the collective decision taken by the MAI and its member multiplex operators not to exhibit the films of the FTPGI members in order to determine the price of their services was an anti-competitive agreement.

Besides, it was alleged that their collective decision for not exhibiting the films produced or distributed by the FTPGI members, if they do not agree to their demand for higher revenue share, amounts to abuse of their dominant position.

The producers had consequently asked CCI to restrain the multiplexes from entering into such alleged anti-competitive agreement and from abusing their dominant position by refusing to exhibit the films.

Source: http://cablequest.org/news/national-news/item/829-cci-rules-out-cartelisation-abuse-of-dominance-by-multiplexes.html
Source: http://cablequest.org/news/national-news/item/829-cci-rules-out-cartelisation-abuse-of-dominance-by-multiplexes.html