Multiplexes move Competition Commission against producers

MUMBAI: The Multiplex Association of India has filed a complaint against film producers alleging “cartelisation” to the Competition Commission of India (CCI).
The complaint that has been filed against United Producers and Distributors Forum, Association of Motion Picture Producers (AMPTPP) and Film and TV Producers Guild of India pertains to Sections 3 (3) of Competition Act, the provision of which deals with anti-competitive agreements and cartels.

“Producers have been accused of cartelisation. Cartel is an association of similar companies or businesses that have grouped together in order to prevent competition, “avers Anil Nagrath, former secretary general of IMPPA.
He adds, ” I do not know in what context the multiplex owners have filed their complaint but I feel that it must have been made in the context of the strike causing harm or serious loss to multiplexes in general and also to the film-loving people.”

“Such activities which cause or are likely to cause appreciable adverse effect on competition are anti-competitive, ” Nagrath explains.

“Multiplex owners feel that blocking new releases had impacted their business and has ultimately affected movie buffs. However, since the provisions of the Act were notified only in mid-May and the multiplex issue pertains to a period before the notification came into force, it will be interesting to see how the Commission views the issue of whether action can be taken in this case,” wonders a trade analyst, on conditions of anonymity,

The move comes at a time when hectic parleys are on between the two parties to resolve the ongoing deadlock over revenue sharing on Bollywood films.
Asked about the plaint, United Producers and Distributors Forum chairman Mukesh Bhatt sounded ignorant about the happening. On the contrary, he averred, “Some progress has been made in the talks with multiplex operators. Negotiations are on and we hope things will be clear in a couple of days time.”

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