CCI fines Kerala Film Exhibitors Fed for unfair biz ways

Continuing its clampdown on anti-competitive practices in the movie industry, CCI today imposed a penalty of over Rs 1.86 lakh on Kerala Film Exhibitors Federation (KFEF) and two of its office-bearers.
The anti-trust regulator has directed the two individuals -- P V Basheer Ahmed and M C Bobby -- to "cease and desist" from unfair business ways. Also, the federation has been asked not to associate them with its affairs for two years.
This is the second time KFEF and these two individuals have been fined for anti-competitive ways. In a separate case, CCI, in June, had imposed more than Rs 1.29 lakh penalty on KFEF as well as Ahmed and Bobby.

A detailed investigation found that the conduct of Kerala Film Exhibitors Federation (KFEF), an association of theatre owners, amounted to limiting and restricting the provision of films in the market.
The Calicut-based Crown Theatre had complained that the federation indulged in anti-competitive conduct by not allowing screening of Malayalam and Tamil films in the theatre since May 2013.
"It was found that due to its differences with the informant (Crown Theatre), KFEF ensured that the informant did not receive Malayalam and Tamil movies for release in its theatre," Competition Commission of India (CCI) said today.

Such denial of Tamil and Malayalam language movies for screening due to the interference of KFEF was in violation of competition norms, it noted.

The Commission has imposed a fine of Rs 82,414 on the federation as well as a total fine of Rs 1.04 lakh on the two office bearers -- Ahmed and Bobby. While Ahmed has to shell out Rs 56,397, the amount to be paid by Bobby is Rs 47,778.
The quantum of penalties translates into 10 per cent of each entity's average income during a period of three financial years ending 2013-14.
CCI said distributors denied Malayalam and Tamil films to Crown Theatre due to the ban imposed by KFEF. "They apprehended that non-observance of the directions of KFEF would result in their boycott as well by the members of KFEF," it added.

KFEF shall not associate Ahmed and Bobby with its affairs, including administration, management and governance, in any manner for two years, the order said.
Furthermore, the Commission has asked KFEF to "organise, in letter and spirit, at least five competition awareness and compliance programmes over the next six months" in Kerala for its members.
Passing the order, the Commission observed the "utmost disregard" by KFEF and its office-bearers to the past orders in other cases as well.
"The conduct of KFEF and its above said office-bearers was under investigation in a previous case and despite this fact, they resorted to anti-competitive activities," it added.