 "Kamal Haasan movie ban draws CCI ire")
The Competition Commission of India (CCI) has said the refusal of the Tamil Nadu Theatre Owners Association (TNTOA) to screen Vishwaroopam, the movie produced by cine star Kamal Haasan, appears "anti-competitive in nature" and a violation of the law in this regard.
Accordingly, it has asked its director-general of investigation (DGI) to probe the matter and give a report within 60 days.
Kamal Haasan had signed an agreement for a one-time telecast of the movie by six direct-to-home (DTH) televison companies, a day before its scheduled release in theatres. The six were Airtel, Sun Direct, Tata Sky, Dish TV, Videocon and Reliance BIG TV.
Haasan's production house, Raaj Kamal Film International, complaiend to to the CCI. It contended the resolution was "a direct and blatant contravention of the provisions of section 3(1), read with section 3(3)(b), of the (Competition) Act". And, that the Association had acted as a cartel, a breach of law.
The CCI says it agrees that there seems to be a case, on a basic reading of the facts. Its order says: "...the objective of competition law is to promote competition and consumer welfare. Dynamic efficiency is one of the key factors. Technological innovation or utilisation of existing technology in a more novel manner is the right of every entrepreneur...(Raaj Kamal) was trying to experiment with an innovative way to have a premiere of its movie in India through DTH, so as to have reach to the maximum number of consumers/viewers..."
Adding: "The decision of the Association not to exhibit the movie or any other before it was released to theatres through DTH or any other technology, prima facie has an effect of limiting the market of exhibition of films for the benefit of viewers...the decision also seems to be restricting (Raaj Kamal) from taking advantage of technological developments in the relevant industry..."
This, it says, "seems to be anticompetitive as it deters a producer from providing to consumers an opportunity of watching a premiere show in an economic manner in the comforts of his home. It also has the potential of adversely affecting the competition and depriving benefits to producers and consumers of new technology".
In fact, it notes, the use of the words "any film and through DTH or any other technology" by the TNTOA seems to have an effect not only on Raaj Kamal's movie but also would amount to closing the doors in future for forthcoming movies to choose innovative technologies as a mode of premiere show/release of a film".
The resolution, says the CCI, seems intended to limit and control the market in the exhibition of movies, as well as innovative use of technical developments in the exhibition of feature films". Thus, on the face of it, it appears a contravention of Section 3 of the Competiton Act.
Accordingly, it has asked its director-general of investigation (DGI) to probe the matter and give a report within 60 days.
Kamal Haasan had signed an agreement for a one-time telecast of the movie by six direct-to-home (DTH) televison companies, a day before its scheduled release in theatres. The six were Airtel, Sun Direct, Tata Sky, Dish TV, Videocon and Reliance BIG TV.
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In response, the TNTOA, whose membership covers 698 of the 1,134 cinema halls in the state, resolved on December 20, 2012, "not to lend any co-operation for screening of any film that is released even before it comes to the theatre, through DTH or any other technology".
Haasan's production house, Raaj Kamal Film International, complaiend to to the CCI. It contended the resolution was "a direct and blatant contravention of the provisions of section 3(1), read with section 3(3)(b), of the (Competition) Act". And, that the Association had acted as a cartel, a breach of law.
The CCI says it agrees that there seems to be a case, on a basic reading of the facts. Its order says: "...the objective of competition law is to promote competition and consumer welfare. Dynamic efficiency is one of the key factors. Technological innovation or utilisation of existing technology in a more novel manner is the right of every entrepreneur...(Raaj Kamal) was trying to experiment with an innovative way to have a premiere of its movie in India through DTH, so as to have reach to the maximum number of consumers/viewers..."
Adding: "The decision of the Association not to exhibit the movie or any other before it was released to theatres through DTH or any other technology, prima facie has an effect of limiting the market of exhibition of films for the benefit of viewers...the decision also seems to be restricting (Raaj Kamal) from taking advantage of technological developments in the relevant industry..."
This, it says, "seems to be anticompetitive as it deters a producer from providing to consumers an opportunity of watching a premiere show in an economic manner in the comforts of his home. It also has the potential of adversely affecting the competition and depriving benefits to producers and consumers of new technology".
In fact, it notes, the use of the words "any film and through DTH or any other technology" by the TNTOA seems to have an effect not only on Raaj Kamal's movie but also would amount to closing the doors in future for forthcoming movies to choose innovative technologies as a mode of premiere show/release of a film".
The resolution, says the CCI, seems intended to limit and control the market in the exhibition of movies, as well as innovative use of technical developments in the exhibition of feature films". Thus, on the face of it, it appears a contravention of Section 3 of the Competiton Act.