CCI to issue notices to film producers, distributors

In a first-ever move, the Competition Commission will soon issue notices to film-makers for allegedly forming a cartel to stop distribution of films to multiplex owners between April and May.

"We have enough evidence that film producers discussed anti-competitive agreements in their meetings. We also have statements of individuals testifying against the producers. Besides, their statements in the media are in the public domain," Competition Commission of India (CCI) sources said.

The notices will be issued to the United Producers and Distributors Forum, the Association of Motion Pictures, the TV Programme Producers and Film and TV Producers Guild of India under sections 3 & 4 of the CCI Act dealing with anti-competitive practices and abuse of dominance.

The CII director general of investigations, who probed the case filed by the Multiplexes Association of India, had reportedly found film and TV producers entering into anti-competitive agreements to collectively stop distribution of some films.

During the face-off between film producers and multiplexes during April and May, consumers faced paucity of choice as new films were not released, the sources said.

The CCI, sources said, would decided on the quantum penalty, if needed, after receiving response from producers and distributors.

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