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Moumita Bakshi Chatterjee
Varada Bhat

New Delhi/Mumbai, May 28

Barely a week after the Centre notified specific provisions of the Competition Act, the Competition Commission of India (CCI) has received its first formal complaint. Multiplex Association of India has filed a complaint against the film producers on Tuesday, alleging “cartelisation”.

Sources said that the complaint had been filed against United Producers and Distributors Forum, Association of Motion Pictures and TV Program Producers; and Film and TV Producers Guild of India.

Interestingly, the move comes at a time when hectic parleys are on between the two sides to resolve the ongoing deadlock over revenue sharing on Bollywood films (the stand-off has resulted in boycott of multiplexes by producers), and according to industry representatives involved in the negotiations, the situation is so fluid that a settlement could emerge anytime now.

Mr Mukesh Bhatt, Chairman of the United Producers and Distributors Forum, said that the deadlock would end within the next 24 to 48 hours.

“We have made some progress in the talks with multiplex operators. They are willing to agree on certain demands, but since the negotiations are on, we can’t call it a settlement yet,” he added.

Till late evening, the complaint made to CCI had not been withdrawn; and sources also pointed out that regardless of a settlement between producers and multiplex owners, the CCI will continue to look into the matter as the complaint has already been filed and is now pending consideration. Repeated messages and e-mails sent by Business Line to Mr Deepak Asher, President of the Multiplex Association of India, remained unanswered. When contacted Mr Sharavan Shroff, Managing Director, Fame Cinemas, declined to comment on the issue.

Sources, however, pointed out that the Multiplex Association of India in its complaint had contended that blocking new releases had impacted business and ultimately the consumers. Sources said that the complaint pertains to Sections 3 (3) of Competition Act; the specific provision deals with anti-competitive agreements and cartels.

“CCI will take cognizance and under the Act there are two possibilities. Either CCI can pass an interim order by desisting the parties not to indulge in cartelisation, or the body could get an investigation done by its investigation arm,” sources said.

However, since the provisions of the Act were notified only in mid-May and the issue pertains to a period before the notification came into effect, it will be interesting to see how the Competition Commission views the issue of whether action can be taken in such cases. The complaint was filed earlier this week.

Earlier this month, the Centre notified the provisions of the Competition Act, 2002, relating to anti-competitive agreements (Section 3) and abuse of dominant position (Section 4) along with other related and miscellaneous provisions.

The Centre has also notified the establishment of Competition Appellate Tribunal which will be headed by Dr Justice Arijit Pasayat, Judge (Retd.), Supreme Court of India.

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