Tribunal Upholds CCI Penalties Against UFO Moviez and Qube Cinema

The NCLAT has declined to stay CCI's penalties on UFO Moviez and Qube Cinema for anti-competitive practices. The companies must deposit 25% of the penalties. Both possess significant market shares and impose restrictive agreements on cinema theatre owners, barring competition. A hearing is scheduled for August 1.

The National Company Law Appellate Tribunal (NCLAT) has upheld a CCI order imposing penalties on UFO Moviez India and Qube Cinema Technologies for anti-competitive practices. The tribunal ruled that the balance of convenience favors the Competition Commission of India (CCI), based on a supporting DG Investigation report.

On April 16, a penalty of Rs 1.04 crore was levied on UFO Moviez India and its subsidiary, Scrabble Digital, along with Rs 1.66 crore on Qube Cinema Technologies. These penalties stem from allegations that both companies monopolized digital cinema equipment leasing to theatre owners, restricting competitive practices.

NCLAT has directed the accused companies to deposit 25% of the penalty within two weeks while dismissing their application for an interim stay. A hearing is set for August 1. The NCLAT found the lease agreements imposed by these companies restrict third-party content procurement, violating competitive market norms.

(With inputs from agencies.)