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Tag: CCI

  • Can’t insist producers to use only their members: Competition Commission to FWICE

    Can’t insist producers to use only their members: Competition Commission to FWICE

    MUMBAI: In a landmark judgement, the Competition Commission of India (CCI) has told the All India Film Employees Confederation and Federation of Western India Cine Employees (FWICE) that they cannot insist producers to take only their members to work with them.

    On 31 October 2017, the CCI passed cease and desist orders against certain national and regional trade associations of film artists and producers for engaging in practices of controlling/limiting the supply of services and market sharing. Such acts have been held to be in contravention of sections 3(3)(b) and 3(3)(c) read with Section 3(1) of the Competition Act, 2002 (Competition Act).

    The  final order by the CCI was passed on an information filed by Bollywood producer and director Vipul Shah who alleged that specific provisions of the MoU dated 1 October 2010 (MoU) signed between FWICE and producer associations i.e.  IMPPA, FTPGI, and IFTPC relating to various matters including member-to-member working, fixation of wages, etc., are anti-competitive in nature.

    Thereafter, on 8 August 2019 an application under Section 42 of the Act alleging noncompliance of the aforesaid order by other parties was received by the Commission from Contiloe Pictures Private Ltd (CPPL).

    On 12 March 2020, the matter was listed for hearing between FWICE and CPPL. Upon hearing the counsels of CPPL and FWICE, the commission observed that the contents of the directives issued by FWICE to its member affiliates/producers were in the nature of direction to its members not to engage the non-members and were in violation of the order of the Commission dated 31 October 2017.

    Later, FWICE submitted that they would withdraw their letters dated 29 March 2018 and 26 November 2018 issued to its affiliates and also the letter dated 30 November 2018 issued to CPPL, without any conditions. The association also tendered unconditional apology for disobeying the directions of the Commission.

    The Commission directed FWICE to issue communication to its affiliates," all production houses/ producers including CPPL regarding withdrawal of the said letters and file a copy thereof with the Commission within a period of 10 days. Further, FWICE was also directed to file an affidavit along with status/ compliance report within ten days to the Commission."

    However, the commission later observed that none of the parties have filed any evidence. Therefore, the commission has directed all the parties involved in the matter to file an affidavit along with status/compliance report through e-mail at secy(cci.gov.in, latest by 15 July 2020 without fail.  The secretary is directed to inform FWICE and CPPL, accordingly.

  • MIB’s inter-ministerial committee considers TRAI recommendations on monopoly of cable TV services

    MIB’s inter-ministerial committee considers TRAI recommendations on monopoly of cable TV services

    MUMBAI: In the face of rising dominance of certain multi system operators (MSOs) and local cable operators (LCOs) in several states, Telecom Regulatory Authority of India (TRAI) had released recommendations on “Monopoly/Market dominance in Cable TV services” back in 2013. The regulatory body was requested by the Ministry of Information and Broadcasting (MIB) to provide its recommendations on this issue. Presently, the recommendations have been considered by MIB.

    Indian National Congress spokesperson Manish Tewari sought a response from MIB about status of the regulatory body’s recommendations, monopoly in cable TV services, reasons behind the government making recommendations to Competitions Commission of India (CCI)and whether this violated the TRAI act and also if the government agrees with TRAI on curbing monopolies.

    One of the TRAI recommendations included Herfindahl– Hirschman Index (HHI) to be used for measuring the level of competition or market concentration in a relevant market. Tewari also asked if the government has an issue with the recommendation while MIB responded that it has also been considered by the committee.

    MIB in its response also said that the acceptance of the recommendations have multi-dimensional implications, which requires consultation with various stakeholders. Moreover, it has also been added that no recommendation has been made to CCI in regards to that.

  • RCom sells assets worth Rs 2000 crore to Reliance Jio

    RCom sells assets worth Rs 2000 crore to Reliance Jio

    MUMBAI: Reliance Communications has completed the sale of its media convergence nodes (MCNs) and related infrastructure assets worth RS 2000 crore to Reliance Jio Infocomm (Jio). The received amount will be the first tranche of payment in the Anil Ambani-owned operator’s asset sale which is sinking in debt of Rs 46,000 crore.

    Following the completion of MCN monetisation transaction, 248 MCNs covering 5 million sq ft of area used for hosting the telecom infrastructure were transferred to Jio. During early trade, shares of RCom were up by 1.97 per cent at Rs 19.14 on BSE.

    The debt-laden company expects to raise about Rs 18,000 crore by selling the wireless assets to Jio and real estate assets to Canada’s Brookfield. The company also said that it would sell an additional 65 MHz spectrum in the 800 MHz band to Jio for Rs 3,500-3,700 crore. Last year, the company shut down its wireless services.

    Back in May, the Competition Commission of India (CCI) cleared the proposals for the sale of assets of Reliance Communications Ltd to Jio.

  • CCI approves 16$ bn acquisition of Flipkart by Walmart

    CCI approves 16$ bn acquisition of Flipkart by Walmart

    MUMBAI: The Competition Commission of India (CCI) has approved American retail giant Walmart’s $16 billion acquisition of online marketplace Flipkart. In May, Walmart acquired a 77 per cent stake in Indian e-commerce company.

    With this, Walmart will compete directly with Amazon India in the fast growing e-commerce market. 

    This is the biggest deal for India’s e-commerce sector, which is estimated to grow close to an annual $200 billion in 10 years. The acquisition will give Walmart a strong foothold in Asia’s third largest economy where the company has struggled to expand due to restrictions on foreign investment in retail stores

    In a Twitter post, the CCI has given a heads up to the proposed acquisition of Flipkart by Walmart. The board, in its order, also added that the issue of Flipkart’s discounting practices would be dealt with separately in the upcoming e-commerce policy. 

     

    The regulatory board also mentioned that the discounting practices by Flipkart may have to be reviewed by the relevant authorities, which will put pressure on regulators to clamp down on discounts on online platforms. 

    Responding to CCI’s approval, Walmart said that the company is committed to contributing to the Indian economy by supporting farmers, businesses run by women in India and small and medium suppliers. 

    The statement read: Flipkart is a prominent player in India with a strong, entrepreneurial leadership team that is a good cultural fit with Walmart.

    Soon after the CCI’s approval on the deal, local trader body, Confederation of All India Traders (CAIT) opposed the Flipkart-Walmart deal on the ground that the acquisition will create unfair competition and drive local convenience stores out of business. 

    CAIT’s secretary general Praveen Khandelwal said to Reuters, “We will certainly move the court against the CCI’s decision. CAIT has called an emergency meeting of its governing council on August 19 at Nagpur, where we will finalise our strategy for a nationwide movement.”

  • CCI okays RCom’s asset sale to Reliance Jio

    CCI okays RCom’s asset sale to Reliance Jio

    MUMBAI: The Competition Commission of India (CCI) has cleared the proposals for the sale of assets of Reliance Communications Ltd (RCom) to Reliance Jio Infocomm Ltd.

    “@CCI_India approves acquisition of RCOM’s towers, optic fiber cable, right to use spectrum and media convergence nodes by RJIO,” the anti-trust regulator tweeted. 

    The proposals cleared include RCom’s towers, India fibre, spectrum holdings and media convergence nodes. While neither Jio nor RCom had divulged the size of the deal, sources have pegged the transaction value at Rs 18,000 crore.
    The deal appears to be a win-win for both brothers as Jio gets most of RCom’s assets, giving it more firepower in its telecom business, while the Anil Ambani-promoted firm will reduce its debt overhang substantially.

    Anil Ambani on 26 December, 2017 said his company had agreed to a new debt resolution plan that will see RCom sell its assets—spectrum, fibre, telecom towers and real estate other than Dhirubhai Ambani Knowledge City—and did not entail lenders and bond-holders writing off dues or converting it into equity.

    Through this process, he hoped to cut RCom’s debt by Rs 39,000 crore from the Rs 45,000 crore it owed lenders at the end of October.

    According to the terms of the deal, Jio will buy RCom’s assets which include 122.4 MHz of 4G spectrum in the 800/900/1,800/2,100 MHz bands, over 43,000 towers, 178,000 RKM (route km) of fibre with a pan-India footprint and 248 media convergence nodes covering five million square feet, used for hosting telecom infrastructure. At the time of the deal announcement, the companies had also said that the transaction is likely to be completed in a phased manner by March 2018.

    RCom is also left with around 134 MHz of spectrum assets for which it is understood to have found other bidders.
    However, an arbitration panel in an interim order recently, restrained RCom from asset sale or transfer, without its “specific permission.”

    Also Read :

    RCom’s 3rd quarter numbers improve on Big TV, consumer business exit

    Reliance Jio acquires RCom’s wireless infra assets

    TV18 completes acquisition of Viacom shares

  • Can’t force film & TV producers to hire people from trade unions: CCI

    Can’t force film & TV producers to hire people from trade unions: CCI

    NEW DELHI: The Competition Commission of India (CCI) has struck down relevant sections in the agreements that various workers’ associations have with producers to only engage their members for projects. It called such a demand as anti-competitive and a violation of the Competition Act 2002.

    This allows producers to freely hire workers, technicians, dancers, junior artists, from within or outside associations.

    CCI chairperson Devendra Kumar Sikri and members S L Bunker, U C Nahta and Justice G P Mittal said: “The associations have used their position to disrupt competition and fair-play in the market through their anti-competitive conduct. Through the provisions of clause 6 and 18 of the MOU, the opposite parties (OPs) have indulged in anti-competitive conduct such as issuing non-cooperative directives, prohibiting hiring of specialised non-member, artists, conducting vigilance checks, stalling shoots for hiring non-members and levying of penalty. All this amounts to limiting and controlling the services in the western Indian film and television industry. Even after the expiry of the said MOU on 28 February 2015, the OPs have continued to enforce the anti-competitive clauses.”

    The CCI has ordered the associations, which are the opposing parties, to cease and desist from continuing any unlawful practice such as visiting producer sets for vigilance. During inquiry by the director general of CCI, it was found that the shooting of various films and television serials had been stalled or delayed because of the ruckus created by the associations.

    This long-awaited order arose from a complaint filed by film producer Vipul A Shah in 2014 against Federation of Western India Cine Employees and 24 other associations representing different categories of workers such as musicians, singers, cinematographers, lyricists, etc. He was supported by several film bodies such as the Film and Television Producers Guild of India, the Indian Motion Pictures Producers Association, and Indian Film and TV Producers Council, Eastern India Motion Pictures Association, South India Film Chamber of Commerce, and Northern India Motion Pictures Association.

    Shah is an independent film producer and director. As a director, he has directed various films like Aankhen (2002), Waqt (2005), Namastey London (2007) and London Dreams (2009), and as a film producer, he has produced several films like Singh is King (2008), Force (2011), Commando (2013) and Holiday (2014).

  • CCI reviewing Jio-RCom pact for sharing 800 MHz spectrum

    MUMBAI: Mukesh Ambani’s Reliance Jio Infocomm has sought approval from the Competion Commission (CCI) for the proposed spectrum sharing deal with Anil Ambani’s Reliance Communications. The CCI website states that the deal is under review.

    Jio is waiting for an approval from the CCI for pacts entered into with Reliance Communications (RCom) and its subsidiary Reliance Telecom Ltd (RTL) for using 800 MHz spectrum, PTI reported. Jio, as is known, is the latest entrant in the highly competitive Indian telecom market.

    Jio had entered into an agreement with RCom for acquisition of right to use some spectrum in the 800 MHz band. Besides, it had, in January 2016, signed agreements with RTL and RCom providing with the option related to use of the spectrum.

    The pacts were “pursuant to the guidelines for trading of access spectrum by access service providers” issued by the Department of Telecommunications on October 12, 2015, as per the notice submitted to the CCI. According to the notice, Jio was testing its network for providing high definition voice, mobile telephone services, video, data and messaging as on the date of entering into the agreements.

  • CCI rejects Airtel charges against Jio

    MUMBAI: The fair trade regulator has dismissed the case of ‘predatory pricing’ that Airtel alleged against Reliance Jio. Airtel officials declined to comment on the development.

    Just giving free access to its services cannot be termed as ‘anti-competitive’, the Competition Commission of India (CCI) stated.

    Airtel had alleged that Jio, in a bid to race ahead in the telecom competition, had indulged in ‘predatory pricing’ since its commercial launch on 5 September 2016.

    With unfair trade practice of free services, Airtel alleged, Jio had used its financial muscle to gain a foothold into the telecom world of stiff competition.

    Airtel charges, the trade regulator stated, would not be considered ‘anti-competitive’ since Jio’s offers were to attract customers.

    A short-term business offer or strategy of a new entrant to penetrate a market cannot be considered as ‘anti-competitive’ in nature and could not be a subject of investigation, CCI stated.

  • Airtel-Telenor India merger approved by CCI

    MUMBAI: The Competition Commission of India (CCI), vide its letter of 5 June 2017, has approved the proposed merger of Telenor (India) Communications Private Limited with Bharti Airtel Limited.

    Telenor India and Airtel had on 1 June filed the joint company application before the New Delhi bench of the National Company Law Tribunal for approval of the proposed scheme of merger.

    Airtel recently stated that it has received the merger approval from Securities and Exchange Board of India (SEBI), National Stock Exchange of India Limited (NSE) and Bombay Stock Exchange (BSE).

    The Sunil Bharthi Mittal owned company entered into a deal with Telenor South Asia Investments to buy Telenor India’s operations in Andhra Pradesh, Maharashtra, Gujarat, Bihar, UP (East), Assam, and UP (West). These seven circles provide about 35 per cent to Airtel’s total revenue. Airtel will also get on some of the Nordic telco’s political liabilities.

  • SC terms ‘anti-competitve’ barring of TV channels airing dubbed serial

    MUMBAI: In Competition Commission of India versus Co-ordination Committee of Artists And Technicians of WB Film and television, the apex court of India has held that, preventing channels from airing the tele-serial Mahabharat dubbed in Bengali is an ‘anti-competitive’ activity, and the protection under the garb of language goes against the interest of competition.

    The CCI (Competition Commission of India), acting on a complaint that the Committee of Artists and Technicians of West Bengal Film, Eastern India Motion Picture Association (EIMPA) and Television Investors (Coordination Committee), demanded to halt the airing of the dubbed serial on some TV channels, held that this activity was ‘anti-competitive’. 

    The Competition Appellate Tribunal however set aside the order and conclusion of the CCI, stating that the EIMPA and the coordination committee were not an “enterprise.” The CCI then approached the Supreme Court.

    In its judgement, the SC observed: This appeal raises an interesting and important question of law touching upon the width and scope of jurisdiction of the Competition Commission of India (for short, the ‘CCI’) under Section 3 of the Competition Act, 2002. Sajjan Kumar Khaitan is the proprietor of M/s. Hart Video having his establishment in Kolkata. He is in the business of distributing video cinematographic TV serials and telecasting regional serials in the States of Eastern India, which includes West Bengal.

    BRTV, Mumbai, which is the producer of  T.V.   programmes,  had  produced  T.V.  Serial   named ‘Mahabharat’, original version whereof was in Hindi.  BRTV entrusted the sole and exclusive rights of ‘Mahabharat’ to Magnum T.V. Serials to dub the Hindi version of the said serial in Bangla with further rights to exploit its Satellite, Pay TV, DTH, IPTV, Video, Cable TV and internet rights till Septembe, 2016.  Magnum TV, in turn, appointed Hart Video as the sub-assigner to dub the said serial ‘Mahabharat’ in Bangla language, which it did. Thereafter, for the purposes of telecasting the said dubbed serial, an agreement was executed for the time slot, on revenue sharing basis, with Bengal Media Pvt. Ltd., Kolkata, which is the owner of ‘Channel 10’, as well as with Calcutta Television Network Private Ltd., Kolkata, which is the owner of CTVN+ Channel. These two channels were given hard disks of four episodes of the serial on 2 February, 2011 and 12 February, 2011.An advertisement was placed in daily newspapers on 19 February, 2011, informing the public at large that the serial ‘Mahabharat’ would be telecast in Bangla on Channel 10 at 10.00 a.m. in the morning and on CTVN+ at 10.00 p.m. every Sunday.

    Certain producers in eastern India formed an association called Eastern India Motion Picture Association (for short, ‘EIMPA’).  Likewise, the artists and technicians of film and television industry in West Bengal have formed an association known as ‘Committee of Artists and Technicians of West Bengal Film and Television Investors (‘Coordination Committee’).

    Telecasting of serial ‘Mahabharat’ in Bangla after dubbing it in the said language from the original produced Hindi language was not palatable to EIMPA or the Coordination Committee.  In their perception, serials produced in other languages and shown on the T.V. Channels after dubbing them in Bangla would affect the producers of that origin and, in turn, would also adversely affect the artists and technicians working in West Bengal. The apprehension was that it may deter production of such serials in Bangla because of the entry of serials produced in other languages and shown to the public by dubbing the same in their language. 
    Because of this reason, on 18 February, 2011 CTVN+ received a letter from the Coordination Committee to stop the telecast of the dubbed serial ‘Mahabharat’.   Letter dated 1 March, 2011 to the similar effect was written by EIMPA to CTVN+. Identical demands were made to this Channel by the Coordination Committee as well.

    It was alleged that for the last 13 years there was a convention and practice adopted in the said region not to dub any programme from other languages in Bangla and telecast them in West Bengal. A threat was also extended to CTVN+ as well as Channel 10 that in case the telecast   is  not  stopped,  their  channels  would  face non-cooperation from these two bodies, i.e., EIMPA and the Coordination Committee.

    The CCI, after receiving the aforesaid information from Sajjan Khaitan (Hart Video), formed a prima facie opinion that acts on the part of EIMPA and Coordination Committee were anti-competitive. Accordingly, matter was assigned to the Director General (DG) for detailed investigation who found Hart Video information to be factually correct.

    Section 3 of the Competition Act, 2002 reads as under :

    Anti-competitive agreements: 

    No enterprise or association of enterprises or person or association of persons shall enter into any  agreement in respect of production, supply, distribution, storage, acquisition or control of goods or provision of services, which causes or is likely to cause an appreciable adverse effect on competition within India.

    Any agreement entered into in contravention of the provisions contained in subsection (1) shall be void.

    Any agreement entered into between enterprises or associations of enterprises or persons or associations of persons or between any person and enterprise or practice carried on, or decision taken by, any association of enterprises or association of persons, including cartels, engaged in identical or similar trade of goods or provision of services, which—
    (a)   directly or indirectly determines purchase or sale prices;
    (b)  limits or controls production, supply, markets, technical development, investment or provision of services;
    (c)   shares the market or source of production or provision of services by way of allocation of geographical area of market, or type of goods or
       services, or number of customers in the market or  any other similar way;
    (d)   directly or indirectly results in bid rigging or collusive bidding, shall be presumed to have an appreciable adverse effect on competition:

    The CCI thus rightly observed that the protection in the name of the language goes against the interest of the competition, depriving the consumers of exercising their choice. Acts of Coordination Committee definitely caused harm to consumers by depriving them from watching the dubbed serial on TV channel; albeit for a brief period. It also hindered competition in the market by barring dubbed TV serials from exhibition on TV channels in the State of West Bengal. It amounted to creating barriers to the entry of new content in the said dubbed TV serial. Such act and conduct also limited the supply of serial dubbed in Bangla, which amounts to violation of the provision of Section 3(3)(b) of the Act. Resultantly, the instant appeal of CCI stands allowed.

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