Cinema Wars: CCI Probes PVR INOX's Dominant Play in Digital Fees

The Competition Commission of India (CCI) is investigating multiplex chain PVR INOX for allegedly misusing its market power by continuing to charge a virtual print fee despite full digitization of theatres. The complaint highlights discriminatory practices and unfair burdens on small producers as PVR INOX controls a significant market share.

The Competition Commission of India (CCI) has launched an investigation into PVR INOX, accusing the multiplex chain of exploiting its dominant market position. The probe relates to continuing charges of a virtual print fee on producers post full digitization of cinema halls.

In its comprehensive 33-page order issued on Tuesday, the CCI noted potential violations under Section 4 of the Competition rules, emphasizing the alleged misuse by PVR INOX. The order stemmed from grievances filed by the Film and Television Producers' Guild of India Ltd, which argued that the virtual print fee no longer served its intended purpose and unfairly burdened smaller producers.

PVR INOX, controlling nearly 30% of India's multiplex screens and total box office revenues, stands accused of discriminatory practices, notably exempting major Hollywood studios from the fee while charging smaller filmmakers. Meanwhile, PVR INOX defends the fee, citing high digital equipment costs. The CCI stresses its findings are preliminary, urging the Director General to conclude the probe within 90 days.

(With inputs from agencies.)