CCI fines 27 film producers for 2009 producer-multiplex stand-off

MUMBAI: The Competition Commission of India (CCI) has imposed a penalty of Rs 1 lakh each on 27 film producers on charges of colluding through a cartel to exploit cinema owners. The CCI found the producers guilty of entering into anti-competitive agreement.

In 2009, Indian film producers and distributors decided against screening their movies in multiplexes over revenue-sharing issue. The Multiplex Association of India (MAI) had then filed a complaint against the United Producers & Distributors Forum (UPDF).

The CCI had found film producers entering into anti-competitive agreements to collectively stop exhibition of films in the multiplexes. The CCI passed the 113-page order on 25 May, 2011, directing the film producers to cease future anti-competitive practices and to pay an aggregate penalty of Rs 27 lakh for having violated sections 3 and 4 of the Competition Act 2002.

“The Commission after considering cumulative effect of all the mitigating factors in the context of peculiar facts and circumstances of the instant case, is of the opinion that ends of justice would be met if a penalty of Rs.1,00,000/- (Rupees One Lac only) is imposed upon each of the opposite parties under section 27(b) of the Act in addition  to cease and desist order under section 27(a) of the Act,” said the commission in the order.

The producers include Yash Chopra (Yash Raj Films), Aamir Khan, Shah Rukh Khan, Karan Johar (Dharma Productions), Ramesh Sippy, Ronnie Screwvala (UTV Motion Pictures), Ramesh Taurani (Tips Industries), Ramesh G Sippy, Ashutosh Gowariker, Vidhu Vinod Chopra (Vinod Chopra Films) and Rakesh Roshan (Film Craft Pvt Ltd).

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