Competition Commission Cracks Down on Unfair Cinema Practices

The Competition Commission of India has imposed penalties and non-monetary sanctions on UFO Moviez, Scrabble Digital, and Qube Cinema Technologies for engaging in unfair business practices. These involved restricting the supply of post-production services, creating entry barriers, and imposing exclusivity in lease agreements with cinema theatre owners.

The Competition Commission of India (CCI) took decisive action against UFO Moviez India, its subsidiary Scrabble Digital, and Qube Cinema Technologies on Wednesday, levying penalties totaling nearly Rs 2.70 crore. This move addresses unfair business practices in the digital cinema equipment leasing market.

These companies, commanding significant market shares, imposed restrictive clauses in their lease agreements, limiting the supply of services from other players. The CCI's investigation revealed that these practices created artificial barriers for post-production firms, thereby distorting the competitive landscape.

The watchdog enforced monetary penalties and necessitated the modification of existing agreements to eliminate exclusivity clauses. This decision underscores the regulatory body's commitment to fostering fair competition, ensuring that cinema theatre owners are not coerced into exclusive arrangements.

(With inputs from agencies.)