CCI imposes penalty on Karnataka Film Chamber

The Competition Commission of India (CCI) has found that Karnataka Film Chamber of Commerce (KFCC) and others have acted in concert and impeded entry and screening of dubbed movies and in particular the Informant’s film –“Sathyadev IPS”  in State of Karnataka, thereby violating the provisions of section 3(1) and section 3(3)(b)  of the Competition Act, 2002.

Such anti-competitive practice was found to have an appreciable adverse effect on competition and adversely affected the consumers, producers and exhibitors of dubbed cinema in the State of Karnataka and resulted in limiting and restricting the market for dubbed cinemas there. The Commission also found that KFCC had violated the provisions of the Act, on earlier occasions too, for which it had been penalised in Case No.58 of 2012.

Resultantly, Commission, besides passing cease and desist orders against the Opposite Parties, also directed KFCC (OP-1) to bring in place a Competition Compliance Manual to educate its members about the basic tenets of competition law principles.

A penalty of Rs.9,72,943, Rs. 15,121 and Rs.2,71,286  was respectively imposed on KFCC,  Sa Ra. Govindu,  and  Jaggesh, calculated at 10% of their average income. With regard to other Opposite Parties being Kannada Okkuta  and  Vatal Nagraj, since they had failed to furnish their financial details despite sufficient opportunities, the Commission decided that a separate order regarding penalty would be passed to them in due course.

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