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Penalising the Tamil Nadu Theatre Owners Association for unfair trade practices, CCI has asked it to "cease and desist" from such activities while giving its ruling on a complaint by Reliance Big Entertainment related to release of Tamil remake of hit movie Dabbang.
The Competition Commission of India (CCI) has slapped a penalty of Rs 41,393 on the association, a major grouping of film exhibitors in Tamil Nadu.
The complaint by Anil Ambani group company Reliance Big Entertainment had alleged that the association indulged in anti-competitive ways with regard to release of Osthe, the Tamil remake of Salman Khan-starrer Dabbang.
In its order on November 5, CCI has held "that the impugned conduct of the opposite party (the Tamil Nadu Theatre Owners Association) was anti-competitive in as much as it limited/ controlled the supply/ provision of services being in contravention of the provisions of...The (Competition) Act".
The Commission directed the association to cease and desist from indulging in such anti-competitive conduct in future.
Further, CCI has slapped a penalty amounting to 10% of the average turnover of the association. The penalty imposed thereby is Rs 41,393.04.
Reliance Big Entertainment had entered into an agreement with the association to distribute the film Osthe.
However in November 2011, it was informed that the association had decided not to screen the said film in any of the screens of its members since the said film's satellite rights were granted to Sun TV.
Reliance Big Entertainment in its complaint had alleged that since Sun TV owed some money to a few theatre owners the association decided to ban all films which were either produced or distributed by Sun TV or even the films whose satellite rights were granted to Sun TV, in order to recover the money from the broadcaster.
According to the complainant, "banning its said film in theatres in Tamil Nadu just because the satellite rights of the said film were granted to Sun TV was highly unfair and clearly in contravention of the provisions of the Act".
Following the allegations, the regulator had directed its investigation arm, Director General, to probe the charges.
The investigation revealed that the decision on not screening Osthe had affected adversely distributors and producers as they were not able to book the theatres on account of the ban by the association.
Emphasising that anti-trust laws are not an impediment to activities of trade and professional associations, the Commission in its order said members must be fully aware of the types of conduct these laws proscribe when carrying out an association's programmes and activities.
