The Competition Commission of India (CCI) today imposed a penalty of Rs 1 lakh each on 27 film producers on charges of colluding through a cartel to exploit theatre owners.
The CCI imposed the fine on filmmakers after having found them guilty of entering into anti-competitive agreement.
The issue pertains to the strike in 2009 by film producers who decided not to screen their movies in multiplexes over payment matters.
"They have been found having violated section 3 and 4 of the Competition Act 2002, which pertains to anti-competitive agreement and abuse of dominant position," a CCI official told PTI.
In 2009, the Multiplex Owners' Association had filed a complaint against the United Producers and Distributors Forum, the Association of Motion Pictures, the TV Programme Producers and Film and TV Producers Guild of India, among others.
The CII director general of investigations, who probed the case filed by the Multiplexes Association of India, had reportedly found film and TV producers entering into anti- competitive agreements to collectively stop distribution of some films.
During the face-off between film producers and multiplexes during April and May 2009, consumers faced paucity of choice for viewing as new films were not released.
