Ref: Case No. 25/2010, 41/2010, ... vs .£33 U?" £~':S5=..Ig1"M'1E':Nt 0'? ... on 16 February, 2012

[Cites 27, Cited by 1254]

Competition Commission of India

Ref: Case No. 25/2010, 41/2010, ... vs .£33 U?" £~':S5=..Ig1"M'1E':Nt 0'? ... on 16 February, 2012

8-EFGRE THE CDi'iiiPETiTiUN CGMMESSEDN {BF iN§JiA C338 Tﬁfié 0.5'? 2313 Reliance Big Eiitertairiment Limited :- informant Against .

iiamataiaa Film Chaniber of Comrrierce ~-- Qpposité Party 4}. Eastern irdia i\/iotian Picture Association -- Oppesite Paity -2 Centrai C.ii'cu.it -Cine Association, Amravati ~ Opposite Party» 3 Centrai Circuit Cine Association, Jaipur * Dpposite Party-- 4 Centrai Circuit Cine Association, indore -- Oppasite Pai*ty~ S Hyderabad Staie Fiim Clhamber of Cammerce -- Cipposiie Pam/~ 6 i'~iorthr's:i'n india iviotion Pictures Association --~ Umaosite Party-- 7' i\/ic-tiari Pictmes Ass<3«:ia'i.'iori ~ Oppoisite Pai'i:\,i~ imdiari Wiﬂlfiﬂiﬁ i3'ic:'ti,ii"es Disi.i'ii'iutai's Asaociation -- Oppcisite Pai"t\,i-- 9 Bii".a.:'an:iii1as"i=:iiai'id i"v'ic'3'¢:i<3i'*= Pictuiies .A-*5s.«:icia'ti5;. - =C'i;3;3c>3iie P2.-ity"-» 3.0 we C.i"iE'i"ii'i'c3i i<-:m-:.iiii3L:i*:;3ii"i Thii"iiXa'ai§i.ii" Dis;'i;rii_:'i; aiiim' Distrii3utos"s f-zsgociaimn -- i:3;2;:»o:~§it€-: -~ ,-,'_-_ _ 3-~_I__'__i'.-.-__,__u <(_'__r-"_' |"_',; r\__'__,,_-:.:4. r}_'_.s_.. Vt") i_»g;g:,a~. riiiigfp Liz:-mimiiiciis. 3gm&i&,ci;E ~- '\J§.3§Ji.,3.>ii.{:' i as Ly" .Lz. aw, , r '* Fm» \ wigs iaie. Ci'? K'.':'3.€} " LiT\i' SO'?t\Nai<; Ccii'i"im'iini»:a*:i(Jas Limi'1i:~;Ci : in'i-::- n'iam Case Ne. 45 an' 2018 Re!ia_nr:.e Media Works Limited 1 Inforrnant A Agalinsf Kamataka Film Chamber :2? Ccxmmerce -- 0pp~:3:3%te Party E ' A I Case :x2a...4? <:sf2-31.{} Reiiance Big Ente:*'taim"nent Limited - : W'<3rmant Against Karnataka Film Chamber of Commerce ~ Opposite Party Case Na. 48 sf E919 F%CCi Muitipiex Association of India : lmbrmam:

Against iéiamataka Fiim Chamber «sf Commer-t -- Dgaposite Party Case Kc). SE': 91' :»i€}1E"3 Eras mt-ea'ne;'=;iQna§ Media Limifezd : mfcn*ma.nt Agasnsi :3 ...-.. .

=";'«i5nar and ."~'n:-::"'s<,ham' f'~.«'"lo'cisin P%c'mres Agar:-:ia:icm - D;.:>;:w.:>=.-;'a:c--;~ mg

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U 1 'J .}G§£C'.?'~.!c.'~¥ *._.<:mn.:"w,.<2s::_.:m0ns Lam?"-'=.0 . 1nfC>smdm Qrder .,.,..............~

1. Bacimmund 1.1 A nurnber of cases have been filed Lmder the pmvisicmf, of 5ev,::§o--n 19{1§ {3} of 'the Competition A 5:, 2002 (Act) aﬂegmg certain anti~c0n1p--et%tixre acts on the part of l<amataka Film Chamber of Commerce (t<.FCC) and other mm bodiéé/'assQciaticms which are associated with the business of Wm dismbuticzn and exhibition in the territmies under their control in India. The present order reiates to Case nos. 25, 41, «:25, .47, 4850,58 and B9 "of 2010 in which im'o:'ma'ti-cm has been fﬁed by various inmrmants against these associations.

Whiie in case rm. 25, Kamataka Film Chamber of Cemmerce (§<FCC)and Bihar and Jharkhand Motion Pictures .!é\s.=;x:::c:iaticm (BJ'[\/ZPA) are amomg ten other' respondents, KFCC happens to be the Soﬁe réspcmdent in case nos. 41, 45, 47, and BJMPA, the sate reapondent in case ms. 50, S8 and 69. 1 /3 in ai! these» cases, the basic issues raised by the mformants are common two uis>ma"<«.§ H. man 0652;": aiiegsazci fir": Time's Mm =33.'xe;,1'=:,sQ«:Ea_;3nt 'ave se-::'t.év:3.n:., 3 ei the !é'«.ct v'2:;, °~::§«;m,§ 'tar c.c;m:3u'E5C:riiv x'e3*2i:st«3z' 'their ﬁinws wiih ";i".s;=m, 'Forcing 'them to bx: :'2'e~r::ir ..,~ '-\;<' .....nI .42.._..:'...,:m.'+..',,.. .-,.§¢,,. ,.':.«,«.,~-:~.;.«.,.. +1" 3.,» LMHCJH '.')zlH..' Lllbbifilllilﬂlkliy TU 'L3; LHl'"'L.: El!' ' "

rsG:"s~n':«ee'mbet'5, pui:"m*:g :*est:'iC'{i0s'z3 su~:§§'~. ¥im'2'?.' can 'the m:mI3er of cinema '"~l-::' e.

.~V. ssim S a nd izmiro 1"-e3§:>ec.t of e><hE%3§'iEcm of i I' + .-,-.~,'--.'--:-[. A. .« V .' ' I '~.~.' .~. .' .:>r>~.,r<.mt atg_,c..1,rm m:.»s:: wane \.v'::>=a:_c; :~h:« ' 1,3 in addition to the afcsresaid isaues, the lnfc.»:'m;mts also pieaded for mtemn orders under sectian 33 of ":he Act in 'these cases in order to secure release Cn'their'ﬁin'1sVfreefrom any*Fette-rs.. 1,4 Since the issues in am these eighfcases are aimost cc:a»n'm"n:m and idersticai, the Comrmssion has decided to dispose Of these Cases in Qne commgn order, Eackgmund and Ptwzrfiie m' the parties 1.5m lﬁdia, majurity of the ﬁéms are procéuced in Hindi 3anguage. Tami}, Teiegu, Bengaii, Karma_da and Malayaiam are the major ianguages in which the non-Hindi fiims are Made. The business of Wm making consists of various stages imxaiving pr ~produc1:ion, production, §:3ost--pr0duc'2:ic3n, distrébuition and e>:hibitTK:>n. The activities pertaéninig to distribution exhibitior: constitute the finai and p=:»in'ts in the entire value Wain m' ".?'a§m production and exfaibitien. A »::'&stri%3u'ior' dEstr'§§3ufi;§r_m '{r:c.~m the =pr~3s3;uce:' «of 'am-, aw' th:3:*eai*'t:;e}* :'e2<:over£. his costs "fa-'r:>m 'E:E'w.-3 a"«.-Eve-:m.:~:>.s «:--::::1m»-.36 through e>i%':Ei3§':§ot'z '%:'**~.at fiim. §'\i<3w~a~c;':a\,r~:, nwanxy pa'oduc.ers atso pe:*'*§'o:"rrm";g the roie 0'? d§s'1;s";bu'm:':s, whc» p:'a'§'é:r to CS;§3;?;r%%:n,=te: 'ihe.-ir C>\i\ii": ':"i1'"':"1S. For the ;3m"ps.:vs.£33 U?" £~':S5=..ig1"m'1e':nt 0'? ﬂh'T'a di5F:r%§3u_T.iC>a'1 s"sgh*;s_. 'Y-eri'§*';o1'\,.= Cu' ei':tiz'e india at ;:»z"e':3:3rri; brcxadw div's=:":eof mt<:- 12 c:irr:L:it.sy iv 'these cir«:uits, a3:;0C\.a::_i-:m§. sf '.'§'érn r.?':Es':2'ibp1:o4'$ am haw-3 gem:-:"a§%y fc::'me:eu'. R.(%§§5~.i:raz?:i0n Act, , 7* .- 3:' . business of fiém

-JE;'I¥'§§:.w,;'ti:;~z7 «::=nc§ ti": 5:31' 13- w 2":

i\./iernc.iraric:iun'i and J£"|i"tiCi'e.9 of Assc>Cia1;i0s":. Er": aciditian, 'ruies and I'E:gUiEHC§GﬂS '(G R' regulate the activities of fiirn distribution and exhibition have aiso been framed by them. These assaciations i'r'aa§!'ii'_,f r:.i_msis'r_ of the perisezins engaged in the business of ﬁim dis:ribu'tiCm and exhiiaiition. HCJ\A/E\!€3i', same of the assoCia'i;ioi'is also have the producers as their members.

1.7 A brief prwfiie of such associaticx-ns who have been named in me eight Cases under cansideraizion is given beiow;

Pmﬁie csf Respamﬁents A) i<ama'icai<a Fiim Eihamber sf iezxmmerce {SP4 in case ms. 25 and saie espposite gaamr in case rm. 41, 45, 4? and 48} 1.81 Kamataka Fiim Chamber of C-smmerce (KFCC) is an agsczciatiori of ﬁim produc,ers_, distributor's and 'thea'rre owners 'which reguiatesfhe production, distribution and e>chii:=iti«:»n cif iiaimaria and non--i'{annada films in the te:*;'i'I<3ry i\fiysore and most (3? We either ;:iE.ir'ts Q3' iiarnataka. Th-:-3 assmciaticn is uiifirer m€.tai<a Sacieiies R€';§._'§St:'"a%iC»n Act am is ixaving a't3~r3u't Eﬁﬂiié V.' .--.--,' 7*' M» .. -.. »3.--..'.

iiieiaibrzi 5 an 1.351 =,-me.

'f8S~?ei'f"i Ems? §'e*'i«Zi'E'E)?'i €3i::*i;'a,:re .~"<ss:sci:tami {Ci~%'~.;: in case an } iiia'-is':-:=i*e"i inciia iv'%o';ic;:'a i3'ir_:'%;ui':~s ,>i3,s;s0:iatE+3s~ fr was *f0:"mea' in 1945 am is iegisrei ed Lindee' C.c,~mpa':ies ,i\<:?:, '~.§J@sses 0'? member; ~ 'G 3 5 C} Centre! Circuit Cine Association (€3i'»'--3, 4 and S in casse rm. 25) 1.8.3 Centre»; Circuit Cine Association (C{ZCA} was formed in 1952 anti registered under section 25 of the Comparriera "act. it is the reraresentaiive organization of the film distributors and exhibitors frcxm the State mi' Maharashtra, State of ChE'ra'i;tisgarh, iviacihya Prade5i'i anti Pajastiian (virziarizsha &i<.har1desiiRegion5).

D} Teiemgana Fiim Chamber {sf Commerce {Hyrierabad Him Charnber er? riemmerce} r{Di1'--Ei in case no. 25} 1.8.4'i'eiangana Fiim Chamber of Commerce WFCC) (eariier The Hyderabad State Film Chamberof Commerce}, Secunderabad was established in the year 1943., under the Societies Registraiiori Act cm' 1860. The membership of the chamber rzompriges of prociucers {Teiugu and Hindi}, ciistriiznutors {Teiugu and Himiii) and ail exhit2itoi's. Ali ieading iwoducers of Bozriiaay Hindi Fiim industrxg are aise the members of the «.:ﬁ'.ar'rrber, The ciiarnber is having its juri:sciicti<:m over Did' ixiizam Territor'y, iwhich inciucies 9 riisi;ric*rs Teiangana {ﬁmrdhre ." .9 _\ '~ ;.- ,.c r.4.,. m...z _ ..'~,..~,..~ﬂ,. we iiiaueshg, J i3.i:'E:UL: cu iv.i.gsatiw~m-';ia mm,» ? '\3;i:>LE1LJE;> Lsi Nani: i<ameh:i\a imiiberga, and i:?\Z-':iCi'iUi"

9...' E} i\§r3rti'zer:*: indie Marion Pér:'%:ureS .~'5aS5€§C§x'£%'Cii}E'r, in P \ _»::-,2 1,35 i\ior:'r:er'n indie: Ex/i-:3=*.ir:ii': i-'i-:.mi'~:~3s .£\s:.c.»c%a1:i;:rr: ii ' J isr.ribr.::Qrs arm' 'E3k'(i'iiiT)iT.C)i'S regi:»"i;ererj L2i'i:1'--

-A.,

33. ('W Act, The of its r.3;;ne3r";-ai;:i:>="-5 er "--- /\ ~ ~. '-a<« 1-,'- _ '7".-. .-;¢.,. . . , ' :""-~~~ -".~ - Haadezsiw an-.3 Line ,3 :<-;§'::r.~.,}i'y-Jii.,,:icik1i;3T:§u. F) Mention Pictures Assauciaticawr Daihi (09% in case ncs. ZS} 1.8.5 Motion Pictures Assacéatiens ,{Ps,/IPA») is an association Zregi$:erWed_undAer 1 section 25 of the Comgzzanies Act. §t is an associatéon of film ~d§Str'§bL!7{OFS an e>:hibitors for the areas of Deihi and UP.

(5) inciian Mntinn Pictures Disnibumrs Asszmrziatian (GP ~ 9 in case no. 25 of 2010) E 1.8.7 Indian Motien Pictures Distributors Assoc7sa=:3r;>n (£E\/IPDA} regulates the ten'i'tories of Mumbai circuit, Gujarat, Gcaa and Maharashtra (except some part under Vidarbha) and parts of i-(arna'ca§c.a.

H)Bihar and Jharkhanaﬁ Mntian Matures Associaiian (DP - 3.0 in case ms. 25, the sqzie Gpposite Party in cage N0. 59,53 and 62') 1.8.8 Bihar and Jnarknaswd E\f1o'ti0n Pic'tL2:'«2s !--\ssQciatEc>n (BJMPA} was farmed in 1987 under 'me Companies Act, 1955 and reguiates the 'cerr§tor3r an' Eaihar and rE<§";and, ; \ {ﬁner-:na£ K€:ﬁCh§f3L.1{"E3!'t'§ "s'niw'~.r:~:!iu:' Distmri: 'Film C3§E'=3I§"H3L£'ECs1'S Asszan; *'" n :_..3'..§U::

Societies. 'it 1'egu!a't.es the ﬁém d%s';:"iE3uif'n3n in the 1:e:'r%tC:ries of Chennai, Kai':-:hi;:.»z.n'an'a "Fh%rLwaa§EL.r.a' Ta"u?:'»2 ti'2:'ee o"c%*a«~::a' =.3~:g;né:e2':icn€ narm:-E'y, Finn Dist:"'ii'3:_2'ir:>z's' Af3SOC§E§'§j§=3!"a {FD.='1f ate "z';ne- e.'wiﬁ..ivi?:§a5 a:.:%'"1"iE:"n. n'iR:i':'iLi>uit' '-

South indian Fiim Chamber oi' Comrrierce aiso operates in the territory of Tamii Naciu in addition to the State of Keraizi.

3) Qrissa Fiims. fiigrriinuiors Syooiicate {if}?-ﬁ.Z in Case No. 25) 1.8.10 The Orissa Fiim Distribution Samdicate (OPUS) is ﬂ.,iﬂC'CiDi1'iiWg under Utkai Cine Chamber of Commente as its distribution section which was regisi:«e'red under Certificate of R,E3giSti'6i{£iOi'i Act XX! of 1860. There are two more organizations which are opera'cing.in the Staize, nameiy, Orissa Fiim Producers Association and Orissa Fiim Produ::r~3rs Siiiid Association, where diriererit prooiumars and dis'rributo'rs are the members.

Proiiie of informant in the Case ' 1,8.11Theim"ormarits who have ﬂied information in these cases are some of the promine~n't producers, distributors and exhibitors of Indian Film iridusizry. A brief proiiie of iri~fc>rrria nts is brought our in the gt:«ara5 E:-eiow. .» <1'). ' -a «i .~: ' ' v-i 5 ,;

éiiiorrrmiit case ri»:,»:=. 3.5: :15'; we .2»?

1 ...,,8.11.1 The iri'i'orma-mi in case nos. anti 4?' is Fieiiarwses. K Liam'?-:=ci, rgomparw ir'icoi'g3oi'ai»:m' uricioi' the Coz'ri§3ahi»2s A-(X, l'"*S':;. " is is erigageo' in him producttm in " i' _ ".. " .. F »~,- ' -'--i---- i ..

i;i°ign:.=i, rimoi cf-MC! .~..«.-zxrerai mimi ii':L/iiu'-.':

r;iisi;i'ii:m*te=s wr.:»2'ic.iwide. oroji-ac-:5 wi'ch h'ia:'iir .5 ario' ihcii-cm r.iirec:i:ors:. in case no. «CE-R ii i Media Works operates Big Cinemaas, said be !nd§a's iargest cinema chain with over 500 screens spread across India and countries like United State 5;

i\/iaiaysia, Nepai and Netheriandaz.

mfarmants in case mg. £31, 48, S8 and 68 1.8.11.2 The inforinant in the case no. 41 is M/s UTV Software Cowimunications Lirni'ted,_ vifhich has r'E*centi\,1~. 3::-een acquired by The \Nai't Disney Company India Pvt. Ltd., a subsidiary of The Walt Disney Company. it is engage-Ci in activity of bath production and distribingion of mavies. The informant in case no. £8 is FECCi--Mu§ti;oiex Association of liadia, of which the muitipiexes are the members.

informant in tease ha. 50 1.8.11.3 The informant in case no. 50 is Ems internatiozwai Media Ltd. a com1:3an\,rincorg3ora'ted under Companies Act, 1955, which inter aiia carries on the business of prciduction, distribu'ti<:i::'i and expi<::itation 01' cinernatogi'ag::h fi'**m.

H rs :» F: ... ..

.5...» m': "ii i ':-"w§*:'.§>.'»-:".

2.1 The am aiiega'ti«:ms in the ii-":'f(.)!'3i"'~.":a'3L§D§'i ﬂied in eight diff-:ai."e.r'.'t Cb wnici; iirwéez' 'this. :2-rder f§iSCL.iS;3~=E3*fL§ in bi"i.'E.'.{, i.mr3f' i:n.i"m':'nat§c:in Lin 52355-2 rm. fiiecé by Reiézmca EEnte::'t::«=§n;'nem L'mitee»'.2' 4~ 'rt , :_.,r_ .. _,1,f__, ;. ,_'__ _ __ . r\r*_ _,. .-I'. ,g 4 n _.~\z~ ''\_{''«'i('\. "V. Hit'! lH!(.JHHdUDH ii": Ld'.'.vi': NU. [L3 Wdb Hit:'U UH .J.4-.\JD..--.'_U.£.U. E F;

f_.

1...) begs s.u1;;m'ii&e.:i:l ";ha:%; cri" the} E1£~LS<I.v€,"ia5?§0ﬂS i'iame:d ' C3353 ma£<_~:?. it C;f}i':":iT.VL.E§SO!'i'y' for »:s'»..«'£-aw am-~. c§istz'§§3é.N';.. " = '-- -i-- 4. J"- ., . .. . ,. i ,, .; . ' is: use ~.::=:tsu:m~.~_<:. i:~.-'imn aie zEfgL}idi*i°.-'3: M' ins; €}(h3i'Jit(.'.:i'S are aiso th ~a2:"i"ei'ied and penaiized for exhibiting fiims. of such a distributor wha is not a member of any of the crpposite parties Gr whose film is not z'egistei'eti with them. Due to this, the cimma ex.hit»itors do not take Lie risk of exhibiting the film of a dist.ribLitor who is not a member of these associaticms. ihe share of such distrihut<:n's is aiso put on hold. ..J r\ ;..1..»: The informant in order to support its caiitentioiw on this point has submitted a 1ettei"ciated'(}2"d June, 2010 addressed by Eastern india i\/iotion Picture Association to various cinema exhiiaitors in which it has been stated that since the him "Prince of Peirsia" was ncri: registered with the said association before its theatrical re-iease, the distribuitofs share of the said fiim shouid be put an hoid.

2.1.3 The informant has submitted that in the respet:'i:ive States, cinemas are regiiiated through iocai enactmc-ants. For exampie, cinemas in the state of i<amatai<a are :"egLiiated by i<amatai<a Cinemas {Reguiatir;>i'i) Act, §i'i the said A .ic.t_, tine paw grant iicerzse are with the S'ta'i:e Gczvemment which does . --- .»:.Z. i... . -._.. ,. F.' L. . . .. "' .~.. . .:..'-..,'._, 4.... '. '. . I if.3'i_ >:.;§)L3.ic.e't'r3 i_',c.ei am. .:;:"x\f ii <.-saw i€SLii=;ti«;>:"i Er LL} -'.;€ 2ii':.pO:»é3D On an e2>:hibii;.ic:.~n of n":c:;\..-'is, this can omit,' be Lirane by the iicszhsing 3LiU'iC.=i'i*C\_,:'. to the im'c.ri'niai"i1:, §",f.'2'».:'i?:",~'~'d':'-23', these. -:-:i"z_f§-.39' tsesiiti-an s.ti'e:s"agti'i in thegir ter"i'itczi*'y of Ci§?.*E'.i'3EiOi'iS ar=.«:i by vimie 0;" swsh i3OSi'CiC2i'i :.ri' sts+;»ngti'i are aigsie tats i:"sfiL.:ei'w:.e ti'-ms i;.iz':e:rs'ia eiihiiaitcws in their t'a'v'om'. 2.1.4 xix-::corciing ia"ai'o:'i'n:-2nt., hs:>.ii"ig §Lii'Cisf§iJCEE' of m-.:~.\/i CO gqw :' ii' hi fiim wii:hii'*. its «;iomain *1 -"i it L': 2 x} with time diS";!"iiJLitO§'S and a>:hii3itc»r's of Ciiiﬁgiii S. the exhibition of the movie and whca dc; ricit have any contractuai reiatioriship with the prodmers.

2.1.5 Giving instances at discrimination against nor:-~reg,ionai fiims in terms restrictiitm on number of cinemas for screeriirig of non-i*egicmai fiims, the inferma nt has submitted that KFCC has issued a directive to the effect that a nen~i<annada fiim ear: be released oniy in 21 cinemas (17 in Bangalore city and :1 in district headquarters) as opposed ta a Kaniwada fiim which (sari. be reieased in 200 cinemas in Karriataka. I-\iterriati\«'eE',,I, a iwawiiannada film can be reieased in ali cinemas in Karnataka provided it is released two weeks after its reiease in other film territories. KHZC has also imposed a restriction on number of prints in reiation'-ta non-Karmada fiims. it has been aileged that sirmiar restriction is sought te be impesed by the Film Distributors Association, Keraia, by deciaring not to give permission to the mc:>vi«es of any other iariguages emept for iv'iala~,Iaiam to be reieased iri Keraa simtiitarieetisiy with aii" iridiari reieases with effect t'rc»m May 1.. 2.010.

'Z.7...i3 .5.,~'.T.C1€>5"5.ii':§~:'j t«:» iri'?es"mant, dii"ex:i;§ve: "ii-ti the £132":-»i:§an "iacia 'i°iim5 iri iimiteci itiriemas has arr aci\i'erse irnpact cm the g:>roCeee5 ciut the e>»:pi9itatior'i

- b n the r:«:»n»i{es"ir1:~;«:iz:: 'fisrris in the .:.V€'.iﬁ5'§.;[',i:iE"35':'I?:; 1'6:--=£.t.eo' by' i4Z?CC. Sirriiierh,-'. if 3 CT') Q.) :'is:»r.«i<lannai:ia 'film is permitted to be reieaser:i iri i<arriatai<a two weeks after its re'ieese in the r;:t'rier fiirri territo'r'ies_. wiii tdg3i!i$'i iriterest the , -.~, 1 .,., -3.-.E'--L ~'». wk, ~ .--L;» ""'«r\ r';|v'--'«r"L- 4-.---. .--\+.- 4*' an '§"lr'~'\ 'aw! -' "r 5- ~-.1'-' (; (".6 "\ i3EuCii.)~.,E'i','t_A-i:s=..EibLI:.CJ! ;>r~.IC€ Lair; x,.L:i1U:~'.i.}' up \i'\rc:~..~.e.». M32: iimi '\.ivi'.i :iDt -.3'::. uh.' ".2:-iiﬂi:; after T M , weeks of w. . \ s.. C' 2.1.7 The infesrmarrt hea *FL.=r'ti'iei" sLitim§'t't:eci that '=.:'ri:'~' 1-1...,' 1 screens in i<arna%:a5<a as against the directives of KFCC which permitted a new Karmada fiim to be released an 21 cinemas oniy. Corisequent¥~,x, K?-CC issued 'ins'truc'tien.s to sail ncisieme theatre owners not to screen the said I;:Hi'I'ii Most er"

the exhi§bi'tors agreed to foiiew the ciirecfves of KFCC. The infermant 3.550 subrriitied various press armies to support its conterrtion. A new 0? letter dated ii?" May, 2D1G.addressed by the lm"c»rman': to KFCC requesting it ta permit the inﬁarmant 1:0 reiease the fiim 'Ki?;es' in edditicmai five theatres in Mysorre Circuit and ietters dated 215' May, 2010 and 22" May, 2010 addressed to KFCC agreeing not to exhibit the fiim in the additieiwai theatres but oniy in the theatres permitted by KFCC had eiso been submitted. 2.1.8 According to informant, itwas forced ta comply witri the directives of KFCC and it was abie to screen its fiim oniy in 2,4 theatres in i<ernatai<a-- 1? screens in Bangaiore, ii in rest of the state aria in 3 new multiplexes. in , . , L. _ . .3 . , i'. , '-

suppm': of its c;om:em:r_m, copies Oi Eeicters denied .2 'i Max}, 2010 and 261"

November, 2.809 addressed by i<?CC ta various cinema ex'ni5:iitors indicating

2... 4.. .",.... ....\'n'--. ~. I: 'It' ' ,._ I. '; ,.* *4 i- .., ' £:l.... Em,-i. Eire E2;€eLu=_:'~.?~':' €..L.~sn=i=:t«..ee C! §«-irL-L has C3'3CiCA{'}C§. aiiow $'i<.:I"!-i"vEii"'.§"!cxC':€':« mans *. -_ -1 ' . .\, --.-.l '' -, .~.--.. ...".' " " -1 ' ~.. .--: .- L... 10 r ease in Zﬁ sue: 1.' msteeu or 231 ::~L,E€'r3: 3 if the faim =:':iS'=.ii":bU'CC3i:: r3.ui':~c3?"E LU sr_i;:;-i_i§z~3'-ti«:.»i"is the 'ie'*;':er, have been ::ui;>mi':te L..-

I' . 3'-C>3'mai'i'5C, i*estri.:':icms impeseei its fiirn had a 'asge ao'vei'se nripaci. en the revenues ai 5131;: 'f'rc»n*i expi<:>iteiiori of ithe mm '3-{i+2s.' ii"; i<as'rietai\a ,=_ e tr; such 'estric.ftic2e:4_ ir'i'?:.-m'ia:'i'a'. ?'ie:j E02: iii') iih; . _\ The 1m'e.rman'r has r'u:'ti7.e.s' C.r§::riii-»..e fxfeiexvisicaii cuesteu ''''~-.. I '-,4//' z;)A/ av i'IFCC to :'e3voi<e its decisiori of imposing restrictions can non--i<ar'inada iiims, However, tin-zre was no response to the said ietter by the asscmiation, 2i1.1'l The ir'ifQrririai'it has aiso stated that the associations irnpose unfair hciidbacii restrictions for expioitation of-Sateiiite, Video, DTH and other rights of a film fair a certain ;3ei"iod from the date of 'i:heEatri<:.«3i reiease of the iiim. These associations c:om;;sei a distt'ibutoi' to accept the héidiaack restrictioris-.by executing an Lmdertaidng to this effect as a comziition to the membership. For instance, Ceimai Ci*cui'c Cine Association, Bhusawai imposes a i'€S'{E'iC'£i.Di'i through its i'nembei"ship form that a ﬂim djistributor wouici not erziiibit er expioit hisfher iiim 'thi'c>ugi1 the medium of Video, Cabie "W, Sateiiitie or any o'ihei' netw0ri< thrpugiw VCD, DVD or 'timmgh any other fcsrm for a period 01' (me year fmm the date of theatricai reieaseiri india and in the event the distribLi'toi' would breach this corvjition, inefshe wouid be comp-eiieid ta dis.tribui;e amerigst ﬁhe dis¥:.i'ibutoi'5, 56% of 'the income/reaiiz'ations cm the basis of preiraienic ieaiizaioie ratio in accmclarice with the ag-;'reemen?_ between i'i'iui'i'ii3Ezi, F.M.C. i\-ﬁutiwbaai CCCA [:73

- .~'i~i ..,. __ iiigsaziriiai Ciél'-Zed _'i.=:f .!i.2i"i:~:, ?.U;:U. cam: cm.' the memi:-rership fcgrrn of Cen'i;rai ~C1ir::=.ii't Cine ﬁ\.€:T.DCia?iC>i"i, Bhusawai ,= A. ...- .i. ,i 3t ,\.. "w' '7' , '_. 3.1.." _.. ,-.... - i".;-- \.,.:. ...,i aim ciicLiio«s dasaeis 21 .iL:i=e, ..:.i.}C:{} aegasdmg mi: :;i":c1H§,€i'3'3E?iiL .r3.:~.s\.k~.».§ 3 v'*i"

':3E=.:'i!i.-ween ,i'~..i.F.P.C. i\/ii.;'.i*.'i:?.'k;51i, i3.i\ri.C. ix/iLsi'rib-ai and (Ii.T.C./1. E~h=.,:sawai has suigm *:*cri IJY {ha iiiiG:'iiias.t .6 '.'':..73' !1iC~::'3 "int; :c the 'Wioi ism. these ':3 ? ictism .iT:ii"sad is'; 1 <- "'\Ci"§{?1':,.7'3Ji":"\.v""; "'15? '5J".' '."5"7"' 'Ni'-E"'\' fr} "-'.'~C.'" iinﬂp' 5+ V")-i":' ' ' L.~..\., .....iL»3.. },-\.~\ \4 Ji..>Li. pp.) .. i.\_ \....), _i..L._. uL {.3 .

imm e;=<hibi*:ii>n i'iim:.~ in 'ti'ieai;:"es are ncri; 5 >:\?':- {:12 i') tins ! \ .3 i

-,~,s.'.,,_,._. ..,.' ,.... ', .,":, , ,H.,'.. -. d:s.:i:i3u"tui -\,u.»,i:~., i3s:tici,:idii«,» w;"i-2:"; C: him Ci-39:, mi :3, :.ii:

i .5 \ 3 .

and m such a scenario, Sateﬁiite, vic.1'=eo, Came, DTH and ether n«:m-theatre piatforms have become Earge source of s'evenues for the distributors.

2.1.3.3 The informant has submitted 'i.Hz:;'%; a hoidback pericsd of 45-60 days from the date of theatricai reiease of 'Mm 's reasonabie and stsffécient, considering the '.Far:i that a ﬁtm normaiiy does not run in theatres 'beyc:-nd this pét'iod. Hewever, a'-holdback period of 6 months or {me year prevents a distributor tram recovering his costs and causes significant tosses to the d':stz'ébutc>r', since if the expisoitation of film over other piat'?orms is deferred for such an umustified period, the fiirn wouid lose its cemmerciai value.

2.1.14 According ':o1m°<:>t'mant, by imposing unfair and unjustified restrictions, the associatiohns have curtaﬁed the infm'mant's right to free trade and A professian and thereb~,/ vioiated the 'funciamentai right of the Informant to carry 01': their tmcie and profession.

2.1.15 in order to 'mr?;"'ess ':":s as'gL.:m.ents_, the mfbrmant has brotsgtﬁ Gui that

- ..... ~~' - '. .. . .-. \"V' ' 'e:E-use umszs :'=.s\~:' SE\r';:§t.'*.\ \ ':r\r<. . .... u 7 l'_ X .: -:«".~ .« -. -.3'. - 1: ».- ;'.;k._, Ciazr-..;rUi t§":{:'- G2sCH§"ﬂ.;i1E;.'t1'Q=k c.g:_--u.:;3t t-~.»m<:ia Hams :3} a's:.gionaE ﬁims 1'01' instance 'me; 283,7', in the "ass: Cs"? .i%ashir'wa:i ti-ilzims vs. ?.,}.m<;'::': at W318, the SL2z:mren'v= f"r=u:"t st.ruc:%< c,'?.r.w~m shs '~r\c*h="' '-.- 5...... ~.- 4., »"\ wit u Act as dEscrix'n§:':tat<3r\_:' 2-geainst n0n--Te'1u-"L; fiims VES--i%.~'\/is ti 0 . x.' :3 r')

--4.

m r:

('FD C ﬁirns i:»\,.«' imgacxsing EL?

§':igh«:%r e:'~.te:"ta'mm.s=nt tax: on ncs:~;vTei:..sgu ':'Ei=W in ZZ'.rO'9,. 'm . .. \. . VI ,,.'. ,,._.~.:;_: ,\, ."4, .4 1, . ~.. ..'." Al .. 'K P-!"r'l' .-.3. (' ,. ,-. . .. ..-. -f'f rt ~:3HD{§1:"~'_.§ 'um it L»t:i!-..!C.-H §3:E".:, L)'.-' f--'.c-}>,2»:Ii \fs.='d£: NH: 3:. mt" '>1-E.'.iA':.FT!'~"', 'ﬁ.'._H£" §suL§3Q ! J - .

«_.

"..... -', ..;.,. ' . F . .... . .. . '.,.,r ,. 'Q. ,. .5' notmas. LO «Cr,-»-av-._é .'=mem_s ~.rx.«"n.r.: UcJ'\'tf sia8é';vu:\' ,,,~/" _ between fiims an 'the basis G'? he-s1gL.:ag:~: 'M'\.':'s€~'. §a<3'~..rwz'a;<.; 9;: 'A " i 'E3 U :'th as 2', in ..J -

. L 7'! '''''4--»~..u«' the Deihi 5:-iigh Ccsimi observed that ifethere is an abuse cf monopoiy gmwer by a trade body the cmirt is not poweriess to circumscribe the unfettered right of an ass.-:§cia'tiori teiexciude ei pehson fi'r.:ii*ri the meri9ii3ersiiii:.> 'Liie arsciciaition.

2.116» Cin the basis <31' above; ii: hag been submitted by the ini'oi'mant their the opposite parties by virtue (if their position of strengi:h are abiiging their dominant position and are abieio compei the distributars 'ix: became their members and be obiiged abide by 'i_'i'ieir Lmfais" and discrimiri;:itcirv i'esti'ic.i:icms imposed by them which is ;:>:'-cmiirsiiteci under Section 1i(2}--(a) cf the Act. Further, by impcising re3'£:rir:'tir.ms such as iimit cm the number mi' cinema theatres far expioitation, banning of films, undue long held back perimd for sateiiite, DTH and other rights the associations are engaged in deniai of market access. it has aiso been aiiegedi that the opposite parties have coiitraveried Seiztion £i(2){e) of the Act by di:;::rimiria'i;ing e:{_-;aii'ist the non--i'egionaE films by unduiy ;:>i'oiei;i;ir'zg the regicmai fiims.

ﬁr;

1.'. .e 25' in'?;ez'im or-Cier in rm, . _ , .,~, .\.»,,, ,''..--.A..-- .L ;--, 1-,» /E2... ..'...,.{.... 4., .... .:...,....L.,,,.,_.'_ - - ' A r ,-.»,.-.,.'..J' . ' 'ci{;i.iieiien0ing 'mat iii»: Lmc.iiiii».iim-C.-=3» '\.'i'~'.'-:.'Ji.ii='C.'.U%'.'. of the -.-.':>E>LJL.ir:1UOF\ U"

:3 EC'.

CI '.1.

17. Uh! i'€gLl'iai.iOi".S of ii-rjiciizracia for e><:piQii:ati<:m Svieiiiize Dii-i . u- , ?lii*'.':s iv; vi-nu C COE":'L"'iL'€ in TEi3El{5I'i ':9 iiims ;3i'v:.>;3o5ei, 'cg be aw; if.'>'3-"

i.'m.= mm min 3": iwtm : e"i::i;id the fiim " siairisib rm}. :*'.=i' Each>;;?:'iai"i and Ai:,wx.rai*';«'a Ba»Ci'ici*:an sciiediiieci ii- reie-age in i-iimli ans 'i"'<iTiii 1'.3I'?_.'\\J:K':':7_L:UT31.J.E'Lant::)' 'i\ 7"" 'A 3 ?f, B. .'-'.1' ,,/T

- . A -. !'..*f V V' v "' . , a e ~ » H NJ'-:=;'.".'«. :i \-".";-§~i Ciii§*:'t'An 3+' \aJ» iii'--;\'\."*i7 i'»C' Ci: .. :cz'C.ii :1 E ~.«.,_ version of the fiirri and there were twe indi\Jid;iai censor certificates for both xiersions. However, KFCC treated it a:: one fiim. The inferrriant vitje its ietter dated 31" Mai,/, 2010 i*eqt2'estied i<FCC'to give permissicm toireiesge it-nth"

versieris of the said fiirn simuitaneausigr in two different chair': of ti'ie«3tre:s with a coiiimoriinuitipiex chain. Hewever, KFCC did not agree tea the Ln ame. A com of ietter dated 31" May, 2010 addressed by the irﬁormant to KFCC was aiao submitteci with the information.

2.1.19 The informant in its prayer for interim cnrdei' submitted that the Commissiori might pass an e;~<~parte and interim csrder under Section 33 of the Act, restraining the eppesite pertieis from impesing any restrictions in reiation to release and expioitation of the ini'ormant's ﬁim "'Raavan" untii inquiry was mmpieted arid finai orders were pass-ed_.

2.1.20 The informant in its i'Lirti'ier repiy dated l7.D5.201Ciaiso brougiwt out that it had fiied a writ petition being Writ Petition {Civil} N0.£i2?.7 ef 2010 before the Hen'bie High Cciurt of De-i'ni on 'i5.6.ZE_£'J1O tar interim reiief tiii the matter

- ~ »-, »~ -' L.» =- 4, ""-- -x-».-- 'hr 'L .=*' '.-~ "

was ii-3-riff} L.-5,! tiie LDii;iiii'.xai<.31'.. Tare rirsii in a.=ter riearirrg the. ii'=.ie:'marit"s -iousiseis, Q3-3556.-Ci fi:i":«.? er">er that "t , .. ,... .-..... .""..., '.¢«'.s. .-. ','_'.' """ ,".', 1+ ' :.<§| i'.»_'».» ' L. , .. 4'... etspieacii the L.f.iii'i:T':i3;>ii_)i": .i.L>.Ci'b.,iC;.i.: useif «er iistiiag -ﬁn' tue case mi i":-C-E:E1i"ii'ig oi interir*ri appiicatiori. 'i' we irriermant aise bi'DLigi"ii; out" the §'r'iii<:>v ' .. ....J.... L... .....,...... '.... 1.- ......'... .....-J .,.... uiutzr LU v,.n::»:> im m'L'c:i rm uiuci, ""~. 2 .E........,.'-- i"'\:

Hit? r.i":1iL;:i"i'xc::§il ;E.'L,1 15 in wi"=ic'r'= gerierai i'J«_=:>:~2tii*s_§.~; cm 1E=.E'3.2{i"

aii e><i'iii3it»;::~r:». tr: «

ii) The irafcirmam was aise imbrmed by various exhibitots that KFCC had in its meeting heici an 1i5.06:ZOfiD toittaii the Qxhibitors to submfui; diaéiarstiisiis that they vuouiiihbt exhibit thé fiim 'Riaiavﬂani ' or any Dthei' fiim produced by the im'-:>rmaz'it. in this regard a copi; at the ewmaii dated 16.6."3.i'.'i1D received by the informanfs office rerzording the deveiopments '(i'EmS§Ziii'€d in the said meeting was aiso enciosed.

2.1.21 Acizordirig to informant, from the aforeaaid ie~m:--:iii, it was dear' that KFCC had banned 'Raavan" and 'Raavanan' and requested aii exhibitors to campiy with the same. in these circumstances, the_Ccm1mis5i<:m may resti'aii'i KFCC from abusing their doniiiiaht pasiticm as prohibited by Section 4 of the Act and restrain fmm res?:i'icting any Exhibitors to exhibit the fiims "Raavan' and 'Raavarian' in the State of iﬁamataka Lmtii furizhez" ordera of the Commissigiw and be M.-tstraineci train giving effect ta ietter dated 28.5.2810 am'. imp»c«sing upon am: e3>:.i't';bit=:si's ban an the said tiims. a»:.'t'wities cat i:~r.ii\g<:Cf;t of the iiiitt-:'i'riai':t'5 i"».'=.ovi<:2 with thr: i'T'.C'>\-"iE. 'Raa~.»'23i'i' in c:>2"="2;:ie"~*,i": of C«:>mipe!:i'ti:>i'i £v:.«::ii*'dis'ig to tine: Em? movie was for an ziiii indie i"~&iEE3S<;'-, -cm 18.5.203.Ci,. but i<F<:ZC <:i'eat-ed '-C.DT.".C Cs'? the mov'a«:2 in th.~3 .Sta':;e of i<a:"hatai<a since the im'i':;i'mant <3" a i'ia:_$_ hieci the §'_ii'€S:F;'i"i'{ ii"iirx'3i'i"T':C£iOi"i i>€:m:'«r; theze 4:=:»i*:"iii'iiR€':»i*i and had ais-Q 'iii \ 2.1.23 inierma«'tie»n in case" no; 433 was --i"iie::d -0-n 1.S,{38.2 infczsrmaiciezm in case no. 45 of 2910 mi Reiiance Meciia Warias Limited W'o:'i<s Limited (Reliance ixriedia-"pi, another group «:<:»m:ern of Reiiame Big Entertainment group, stating tiiait KFCC had issued ieister dated Ci2.D8.2Ui.0 to various Kam°iada film di-S'E!'ii3UtDi'S direc*ting them mm: to suppiy the i<a:mada films to the Reliance ivieciia for exhibition in ii:§ cinema haiis which are run in the name of "Big Cinemas" because Reiiance Big En'<eri;ainmeri'i: Ltd, had ﬂied a complaint before the Commission wiiii regard is the distr'ibu*tion :32' film "Raavan" and the Commission was pieased to grant time interim reiief to the group company 01' the Reiiance Media. A copy of the ietter datexzi 2"" August, 2010 sent by KFCC to one of the Kannacia Film distributors, M/s Pa! Enterprises was aisa submitted aicmg with irifmmatirsn.

5 it was aiso aiieged that i<IFffC had a so issued circuiar dated O"/'.OE'».;ZO'3_O in iocai mavvzgaapers in i<amai:ai<a, tailing Li}?-Uh ail distribui:ors, p'rodu~::ers and

1) F7 not to support the Big Cinema and .reiai;eci group =:csm;3a.ni£=s Big Cin=f::ma in' ma': pr:::viciia'ig and mi': i<.am*;a<ia iiims and n-oi' its C.€J!"i'\j «3i"s\; cinema reiated 'ti"smsac'i:iom with ii'iem. KFCC iwad aiso its :':'iemb=:-,~i's vide ciaieci 1éi.08.2{)i.i.f,i witiihaici 'tiirg si*»..ar's3 am-:~.=..m.r aei:-3<.=.> iche ;:ir'iri"Ls from Big Cinemas. in <:>s'dei' ";cJ 5Lii:»:;tamiia':€' 3 *' is com.ez'iti i"'., L we ' Enterp:'izse5 aiid I}'_..1.2i';% The is"=a'::»2'mai"si' aiao Ear-tiughig out thai: an 'i7"' ~,-.4 011 by Réiiance riﬁiédia T atteand The i<ama'tai<a Music awards "function to he heid -an 22"" August, 2010 to he organized by "Big ~i3iv'i"', the radio station _owned by the Reiiance Greup. 2.1.27' According to informant, the cause 01' acticm far fiiing the i--n'iormatiDn was denial of suppiy of ,CIi"i!"i'{S of 'fiim 'La'fange\; Parindey' to the Reiiahce i\/iedbiaiuy the i3:'"DdUC€I" hameiy Yash Raj, because of the 'fear of KFCC, which enjoys desminant position in the State of i<amatai<a. The im'o;'mant aiso made an interim prayer for ciirecting the Oppesite Party not to impose any restriction in reiation to the fiim ﬂaiiangey Parindey" Fiims which was scheduled to be reieaseci on 20.08.Z£O1.Di until the COi7CiJSiOi"l of the inquiry. En'§<:srmati@h in case rm-. ﬁt?' 63% 2310 fiieai by Reiiarme Big Entertainment Ltd. 2.1.28 in the in'f0rma't§on in case rm. ii? flied on 25.-08.2010byRe'iiance Big Em:ertaii'm1eht Ltd. it was fmiiher hrs:>ught out that since eariier iii"-CC unoiue i'£astr'i{;i;ic>h5. an the e2>::hibition m' the fiim "'Raa\raria"' as5r;+r:%.:,n';i0h had adopted x.-'ih.:5ic.¥:i\.v'e mea.2=.:i'~:.e3 to stop the augipiy Q3' g2r'ei'i*:

OT 'ii'ims the im'm:' raani time tr'. which it w2~3£- zmi; ahie '-?;»r;» him: in _ ._.» the 3Ci'e:eh.5 in ihe of KI-}i'i':?":CE}i'1a.

p::w:«=*ic_m ard a ma';.-'«2i' for .

Lt ;i:3§:.*3g:_ '£-';\=*.:""iC3~'S 'the V:sEi':i:i share of revenueé 'I0 it and aiso from mpssing unfair and urxjusétified restrictions.

2.1.30 The inforrnant 3150 made an interim prayer' for directing KFCC nut to impase any restriction in reiation to release and expieitation of any fiim of imbrmant §nCluc§ing; thé 'fiim "Aashayem" xwhich scheduled to reiease on 27.08.2010 Lmtii the conclusion of the inquiry.

W33 Enfcrmation ﬁn case mm. 41 "med by UTV Suftware Cammuniécaizions Limited 2.1.3.1 Enfg31"matior1 in case no. 41 was ﬂied on 3.0.08.2010by UTV Software C2o=mmunicati«:>ns Limited. it was aiiiegeca' as in the cases of information flied by the Reﬁance greup that KFCC makes it c:on*spuIso:"y for every fﬂm distr'Ebutoz' and/or exhibitor to become theis' m«=3mber end,/or 2'egisfi;ez' hislfiim wkh the association. /3:. c:iistribu*i:or who reﬁzses to become a member of the association zaniifas" refL.:se:s s'-egister hi ' T"~§=*-w aim».-'~..-'sci to r:I%:;tri§:2Lste cu" even reiease U' '\-

nis_,r" its féim in the ':ei':'i1:=:>:"y' whi-;:'=L'; :'£ags..a¥a'Ie.d i;.~'y' KFCC. Th rn dis*u'§buto:' is ncrg pe;'m:'t'LEed to su;3;:s%',r its ﬂim is e>:%'ziE3itm' whc is not :,~,-. . 'm.. .«:,r~- I L"- . .L.. ,. :.~., . , ' -5 .43: ...I 5~ 4..-I. .;..... :~.-.-.g:;m~.=.re:f§ sr«..{ms §-\: J1. m --.:..».~. S-:v'~.?h'-E ma cm;::!r.sno.: :>.hm:'cs. Ham :9: $.25:-_.s§=_3= '«'« :-

who is not a an-:3.r"r~,!:sez' dis.Uibu';«;:r sup;'3}ie5 Ets 'Mm ts e><h?.L"»§tI3:" \.n.rh:> is mt n'nern~b-tar. such F:>:§*:%l:*$s'i:o1' wlw ;3>:§':'2§:>'H';s ihe 'Mm of 0:" disi:ribu':or who 1 1, {E"":*73£%°£.:"E5 »;3Wi'1<5.?;':f-a 1 ' ._ ,'| . 7.' ;>.m'.3m*'.;; ';'s.w".3 gr. 5 regﬁstered with it. On account bf such threats, the cinema e><hVii3itQr5/theatre owners 'who are either menwbeys or nemtraé parties are urmxiiling ta unde2'take V the "risk of e_=T>'<h':§5i't':'n;;: the 'Rim of a cﬁistribuitor who is Vribi: 3 mé:'r§bé"rWdfT thé association/ whese ﬂim is. net registered '»'\.«"l'Ih it. Therefcare, the ¥m'Qrman't is required ta segésiier with KFCC fa§iing»\M's1ich ﬁims xmii net be exhibited in we State of Kamataka.

2.i.33Theim'ormant in this cage like in infurmatﬁon ﬁled by Reﬁance group in 0-iher cases afso aiieged that KFCC had issued a directive imposing res'£r'ictions on number of screens in which a non Kannada ﬁim can be reieased, in 3.3 singﬁe screens and "7 multiplexes in Kamataka (20 in Bangamre city and 4 in district headquarters) as opgaosed ta a Kannada ﬁirn whichfan be released in ' 200 cinemas in i<ama"1:aka. Fu;rthe:', in muétipiexes the fiims are to be screened in only one screen and oniy 5sh0ws can be accamrnodated in a day. A non"

Karmada ﬁim can be nﬂeased in aii cinemas in Iiama'-aaéaa provideri it 'is reieased 2 (two) weeks after reiease Tm C2"th€-3i"f§§'Fi'\1§£9.f'f§'iZC3§'iES.

Accc»a'ding to the %m'e;~.s':'nan't, in 'i':_1:"?;%":«2:'a;';<:e 9*? 'J19 ﬁauj ms" 115 9 <iia'£eci:ixses,. by and Lzra-ﬁes' ietfez' mi'! mu%'=;%;:si;~':.>:»:es in §<;'*?CC iiiegaiﬁr «r:.=si:§e:i L.=:::-:33': the »::>:héb%*%;:;w's/ﬂ'a=2at::'e D"\»\i;"}:';'.2'S \rv§1';'P'n-:>i(.:i the sham az*nc.1L:m%; in s'aspc-:2Cf_ :3? the 'i"'i'm'z, "i Hate Luv ..". 1:1 .,.,- ...~, I I :.,. .. ._,. :_.' .-'*»"' 'v. ,......\, 1'.. .--.. v...*::s:: 'uh;-.3 i;;)~=."_:\.'s-.C.na.1-5-.9' me :.m=ms -:3: 2.'?--..w.,. gm-.-.v-~scx:=*~~» %zwes:*¢;ed huge sums of :'nor:{2*;.i in the Him "Vi Hate I'.-=_w SA -

£1' to recover the same by exploiting their copyright in the film and thmeicire, KFCC could not have illegally withheld the due payments, 2.1.35 The lm'f0i'mar1't further suizimitted that the act of lr<FCC calling upon the multi;:ale>< owners to withhold pai,/i'm=:i'i?:s to the clistrilziuigors on the ground of alleged violation of the norms of KFCC was illegal.' The said letter dated July 23, 2010 was grossly arbitrary' and in abuse of 'the dominant positimi enjoyed by KFCC to Lmlawfully gain; from the film of the li'iforn'iar;t and to arm twist the lm'oi'nnam; inte adhering to its iilegal directives.

2.1.36 The iiiricarmant also izirought out that the malaﬁde purpese of KFCC in 'mreatening cinema exhibitors/'thea';re owners of dire consequences Such as not being able to get ariy language film for screening in future if directives of KFCC as regards limit on number of screens for nawiiiarmada films are not followecl is clearly to discriminate against ricm--i'egi~:mai films and to impose unfair l'e$'trictions can the film cii';'stril;m'*':os's wiilr:h is proiiitiited by the Cramp-elitism Act, 2.0=1'.>"'.8y i'estrictii'ig' the mmziaer serreens 'thai':__ rnay be

- .,. ,.,x i ,..-».'4..;' #1 . ,-'.... .. _.. £'i , 'V i' ..-.~_ -.',.\ _-"-"' '. . :.. . =.--:n_ga»~\-:3 "EL. 52.,-'lie-mt Q riot: lac-:l'lll.ElCid mm in l{3:llc,r°l'.m§\::~., l<§'Li, is un; M

-'7t\"L"i'::\«iiiV i:'n;.:':25ii*'ig limit =.im €i'l'E3 swig-ly of a ﬁlm in m:.--:i'l iﬁ'i€)i'l'.'l-3.§"!T has ailegcged 'Ii"-at cleciéion Di l<i:CC. to li":"il3C-SE S'=.JCiT'i =L.=nlaiw'2'=.,il i:.C*'3."eC1i'i':l'{.."-i"l.S in i:;i'ie zsaid let'i_'er cia'i:e<" lu viciiaiion of section 3(3): tn' itiie Coin;-atiticiiw ;'1'\c.i';_.

limiied r£esi:'icts-;=d wi'iicl'i if *'=:'ohii'~'i'-4 .--.~ V!f\&.f~ n '.._..i.. .',\ ;.'r_, ,._.''«,a''' L.€3r*.:_~.r_'£:1,u»3;i-f.~, we mi§.>~.s{3neG r:CE_l{J:l ul mi" ..

distribumrs under Section ti-(2)(c) by imposing restrictions auch as iimit on number of cinema theatres for expioitation, banning :3? fiims. Fmther, Ki?-CC have contravened Section 4(2) (e) by ai'ius:is':g i-Lheir ddminari't pctssiijiihori is ciiscrirninate against the howregioinai films unduiy prstecting the regionai 21.38 The lnfoi'n'=.am. also subrnitted that it had numieraus fiims siated for release which it either is co--pi'ociucing, dist:'ibuting gr has an arrangement ta distribute and a;3prei'1encis'that in the event the aforesaid restrictions and ccinditians are imposed on the future fiirris aiso, grave p:'ejudi«:e arnri Eoss shaii be caused to the informarit. With respect ta the fiim "Peepii Live", which was due for reiease on August 13, 2010, the mfcirmam apprehended Ethat irreparabie loss and injury shaii be caussad to the inﬁsrmant in the event the ' norms,/restz'icticms as set cut in the said Eeitter daied mine 18, 2010 were iiiegaiiy impevseici by KFCC on this fiim aiso.

E:'s'iei"ia.ism"iai":'t Li:-ti. vs. i~i.i1C=IZ earn' if:¢i'ie:'5 h='--d ;3"<"'"'s*" ii"etei'i= K. , .,.J f ..z'. U!'\.z:'E!" s' x-NCPC2 mi ii.-ugiiisig ".-'i"='2-" ' 'I1 ..1».'..(\.'(. Li urgent a=:>;~parte ad interim order Lanxijier Section 33 of the Competitive Act, 2002 restraining i<FCC_from iiftipit;imeti'tii1gar1d/or actingjin furtherance of the lettetlciateti Juneula, 2§DliD"or July 23, .2-010% al'iClf;'Cl-i" tlhié C.}urr:l':iissioh :"riight grant a 'stay against the irmjiementaticm of latter dated July 23%, 2010 and also from li".'i;3OSlPU any i'esti'i<:tion cm exhibition of tilms to be released namely Peepli Live, We are fczrnily, Paar: Sing}? Tamar, Guzorirish, No One i<illec_! Jsssizra, Tees Mar Kfictm, Saar i<.'f3oon Maaf, T:'ianf< you and Chi!/or Pcirw, ii/ly frieitvd Pinto, Dhobi (Shot Oi' such ether films that may be released from time to time by the informant.

2.1.40 The irf<::rmant also prayed that the operation and implementation 03' letters dated Junel 18, 203.0 and July: 23, 2010 be stayed in interim and be quashed anti set aside finally "and KFCC be res'trained and be Cii'Clt':'f'E'Cl to cease and desist from making any discriminatian between regional and non rs-:-gionai films arid/cat -immsing»; any i'es.ti'ictiCms on the im"o'rmant Wl"ilC.lW are di5Ci*iminat3ry against non regional films. l:tii"tl'iEl'_, lv<(FC;C be also i'estraineci tram any =..sn's'e.:ii' an=:l i.2i':ju;~ti'I'ied r€:stréc.'tir_m$ an e>:pioi"ta'ti::m Qt" i:'it"m'mant's; t"-iims whi-cit im;:»s=3;i' the 'ius'is:i3mental right ti' int-a.r'matiQt* ii": «:::--;5e Q00 at tiieti by Fiifiii §v*§ul§'ti.t".r:le:< ﬁxssaciatian at

2..1.z12 The lrﬁorrnant on the lines of lni0;"mat§or: flletl lay Reliance group companies. in case ms. 25, 45 and 47 in the instant case also alleged that KFCC has abueed its gavcieitlloncf dominant in tetrns of impr35iti<V3n' ofiJnt°aiz'\;a:t':c§ r.:ii5criminatorx,«' Condititms in relaticm to retease of n0n--regional mm/les in the state of l<amatal<a on the basis of ianguage lay issuing cirwlars, mtices, 0:21 and written to the cinema 0wn_ers not ta accept norrregional films for exhibltion since the same is not in liannada; car to e>=:hibit them in a partiCula:' manner onty. Accarding to the lrztornzant, restrictions imposed by Kt"-CC are (i) anti~competitive, (ii) um'aix"ly favors Kannacia film producers and distgrirninates against non Kannada film pr«3du<:ers;(iiil blacklists any member without any relevant iegal cause; {iv} impoaes airtﬂtrary conditiczns and restrlcticmg pertaining to the exhibition of a non Kannada film; and (V) prejudicial to consumer interest at large. Taken tQget§tei', these factors are detrimental to the overall film ind-us'try at the country, 2.1.43 FL;t't§"=ea", the distributors at t'eg2:.ms't {'r<annad.=3} '{tln':s have acted together =3" \mla"?;§nn Ct 5CLTlC_~'7" :3{5} at the *;T.or";3~:*: tscn fact ..3'£.i./Z aw 3 aewi: rs.' whrh the cl§5;1;i"lt.mt0l"s of a'egi«:anal télans, '«2~,rh:» migmbele at the I=<§*'C(',', itstntly, in aCCD$'C§Ei"zC€i wi'tt'. :'es't:'i«:'é;%s::ns the association , not a'i<:::'t~i'egiona¥ tltn-':3 in the te:':"l?:t::i'y -:3?" or r.'=3_2l-;=3as+'--,= tl'v3i"n sut>}e<:t to . ~ . ,. . . , _. . ,. , ;

{*1 _..a--!»- ;H. 7-_-,i r(A\.>'+':-|r>'1'}.-\r-,c- -.,» gm-xy~-,.-\.; .v'-.r\' .-~-.. « 1'1-\.-'1 "-r'('('\r'.I*3'1'x/'L\'\ Ir !'\ ﬁr lam. .~ J'u(\.1l i':i7._.tjia'ii'-_;J'..:P..L.'L.'!1.'. :13 :;!!;.I'A._:,n',' 1,: uy LH'~:.'. *::;I.:I'-_."u«':J\.iV.,H:. in iii.-'J H'... .

r"!' his act in t.0nCert on of rezgtcstwal cllsta"il3t;'t<:>:"S not v:>=.1l\,* =' . ,' , _x ' 'c:§tL1 3 irnjz:-act \.-'lat;-le c:»ptic-ns SDt.H'C€' at .rm='aenl;.

».. V.LI.

2.1.44'i'iweinfc>i'mai'it aiso bii'DUgi'1'iiCéL£"C on the iines of infomiation in times' cases that i<FCC,_as ;:>er_its poiicjies which are iiiusti'§ite<:i_ in its ietters dated ﬂusgust 3.4, '2i3ii3,»iri1é'i<es it ctiinpiiiébry for toiibéﬁdnﬁe its nwenwber and/or register his film with it. A distributor who refiiaes to become a member and/or refusie.=_=. to i'egisi:er his fiim with -mam is not aiiowecj ».

to distribmte his ﬁlm in the tsmitciry governed by KFCC. Simiiariy, an €>(i'iibitOi' whr.) is not i'egis'i:ei'ed as a member with the KFCC is forbidden 'fmm exhibiting any film in the state of Kamataka.

2.1.45 The im'ormant has drawn attention towarcis the fact that in iv?-ay 2018, KFCC had imposed certain urifair and iiiegai terms on the owners of iviuitipiex Cinema Halis in i(;amatai<a thereiziy preventing them froin exhibiting the Hindi Language fiim 'i<iTES' in any theatre except those permitted by them (the KFCC), Members of the informant were forced to accept this unfair and disci'iminator»,r cancii'L'ior'i at the cast of huge financiai loss fearing the risk of boycott. Fuiiher, on. May 2010, KFCC vide a Notice to distriizurtars '=.r:sti'aict9»:i 'Lherri to aii«:>w the i"ne:'s'il::~:~3rs of the Sr' '= S*2:'"*:?E:i":S + ".7 i\»'iuiti;:2ie>-;r,:2 Bangaiere c;i'%;y and ti'ieai;i'~:-5 OL!:'iESi'i5' MTV The k is:ribi.=tr:>is were 0' recrrzci in: :0 visiate in»? mm! i\ioisr:s l. miei mi:-I in-mr~+-x r~r-sv~ "|Y'\'4 Iii] vn '\ !r='r~] -'~r *-a V\ -';»'1. FL-xv» --is-\+'r_1:lr~ r'~.~lC -'-iv \-{pr 'w..ii'-~. VN"-I'v3r_r'\) \4I:\»»-v'! i...:l.f)}IL'.'.'D CKIILX Vl".¢lC: if}-.1!\V.'.K..l LL) .{A MD]! Li]. '.J\ -.'xJH"' '-J! ..1iC.LlLI,...J \'t' !..!l ll'Z.}l{l'-'-1' in x.-«.r'%*iic.iW. these §"iO!":~i"€§i-C)i'iaifiii"i'1E\l\fCJUi=j be vveii in a:."3'vance.i s.

Bangalore and dlrected them ta ilmalament thca zlzlfalr and cllscz'lnW.lnat<:>a'y ccmclitions mentlonad laelew: _ Ii. Firét ;Sl:'éfaAl;éri€.€é'Slialllbe. gfﬂleza lie macla films in ixfluliiplex Clmama Halls and they shall be exhibited <:c:»m;:>Lslsm'ilx,»'. ii. Owners <:n' lv3ultlplle>< Cinema Halls shall cUr1tinu<:a to exhibit the liannabla ﬁlm till the collection towards the same are good. ill. Kannada movie shall not be removed from the E\flul'clple>< Cinema Halls without bringing it to the ncﬁ;i»::e of the concerned producer and cllstributor.

iv. One ﬁlm small be restrlctad to ma screen only.

2,.:l..r1l7 The informant has 'further stated that despite the lnstltulglon of an inquiry by the Commission into alleged abuse of damlnant position by KFCC in the case of information filed by Reliance Big Erma-t*taénn1en'E Llmlted in relation to the release of the Hindi movie 'Raavan' or Ravanan' in the cinema in Kamawtalaa, KFCC an luly 22, 2010, -snce again lssued a l13"{'7C€l' to l:l':e owners .. 4.'...',~--\« .-.:l V' .. 1,- :2' ....,.'..~ ,-~ '.-._ .,....x._ , . 4.. M.' .-F. 4.3-. 33'. :

:'1lLAllLE".-'l'C.".)\. »\.anr.-ma halls m l~.23rnm.»_-lxa ll-..-.m;=.zleg them KO §L-.'lE8:»c we mud vi 4' langgueagge 'film ".<l~l,<'é'=7"l"A l\/lEETH.é..' as pelt "ézlva norms: sf assc>ciatlcm's *< QL €13 r".' 0"

L3.

ME-3\;' 23.51, Z3.{Il1.{Zl by vii'"tL2>:e tlma said .ilm beallng a n<:>n--:'ag;lQz"zal film. H;-:"¥l"u::l' 'H3 ' 'IE al:w;>\!a c'lr'eCtlon, l<FC.C also issued '~.~3r"r.1al d.lr'eC'tE:0l'1s to l:ll5t:'EE3=_2'm.r's of the English ﬁlm and Hindi langussge ﬁlm "i<:'r-l£:«."l"l',ia l\l3EE'l"Hﬁ\" ta .~.L... ...V. ._ 'L, .,.. v .'..._ .,\ . .' .2 ..\_. ..,.' ,.... a ' X. \ A ""'."" l '.' . , :.L:lLlE3r' 'C.1l;€l\: to Lllﬁ' l::;SillC.{:O:::> mt ml. in l::~'" liF£...«., latte: ' 3 J i .10. ?--0'alc3wll':-a 'l'.l'w:°..~3rC~: \!'€~l'l.'3.1l cli:w3c:tlo'r:s, ::iisil'll3Lltc:l'5 'J 3

- -l 'J; . . .x.,\'..,. ..,_. ..., r.,§~:

"s<l"lAl A l'vl{:E?H:#. xalrezaa r..0:1suamad to lalaasal l.-llrl aagm iii"

'< wi1':h 'thur; ;"{-:Sll'l'C,I"ZlOP:S §mg:>C:s5:<:§ l:w l:'L§3CZCl. ' I I I 5 ' § 17 , L .

i ........................................................................................... I 2.1.48 .»'»\c:cc2r'ding to the irﬁormant, these are deer eviciences of the feet that despite the orcieif; of the (;Oi"ﬁi1'ii§5iQiT, tpeet qpon the interim erder dated June 17, 2010 and hes tiii deteeoritintied iimstii tiieluiiifaii" and discriminatory restricticins imposed on exhibition at non«regit.ma§ fiims in the State of i<iarnateka. Subseqtzentiy, on August 2, 2010, KFCC issued another notice to aii its members directing them to step the supply of Kannada fiims to Reii'an<:e Big cinemas (one of the i\«'iuitipie:< operators in Karnataka and a member of the informant). KFCC directed the biacitiisting at Reiiance Big cm the pretext (if "some eontim/ers\,I" between ECFCC arid Reiiance Big and instructed the ciistributars not to stsppiy them Kannada fiims Lmtii they receive further' directions from KFCC.

2.1.49 The informant has further submitted that on August 4, 2010, in yet another blatant attemtat at subverting the authority of' the Commission, KFCC I «-

issued anether notice to aii the muitipiexes in Bangeiore asking 'item to withhoiti the si'iere anwcsurzt in the movies ' i i'i:i'xTE LOVE STCJRY' and 'i<NiGi--iT ,»"--\i\iE3~ [3.£a\"' on tine ti'-.et the :3z'£igf-Liz; ',-'i_i""-i:itr_ii.:ut«:»a's tied eiiegeefix,-= vi-*\-"it-P-ri \ with .'._. .

{D the nornws csi' i<i3CC wi'siie ieieasin the :'iin";is, "n ="ueus'=; 6, '5 .__) V another Notice ta the ciisti'ii3utc>i's, i:"astmCting ti'>.e'm not t-Ci the Fiwiish "' 1.':

If r'~ Mm; r :1 r"._.. .. ' _. 4.,-.,.\ " '. . ..«.: ,... ia=*.gu.--:"e * im i:,\PENL.=x~\:»Li._> iii mg - memes in Ei"i~;:'. SL<:'ai.': at K:3if'3d"E:1.!<.7}. ~,_.m '§..r*'r'-I-\!:'rv~s+ r\1('v H": .'*r\vv"rr;-\\Ir)v"r'\I" i'"~.'_'.+'\AIF_\_.'_'_\"\ 1/:l'°\f" »~_\rx¢-3 5-'.-;3"'j«.~'*.r~r3 Qzn xa'.n:~'\tr-in l|2V""\[: .-«r\'}* L42\..\.-'-.11.-{IRL L}! Ci L-'-...-'i!L!\_.i'\.'E.iJE7 L-"L'\.\.'\-'L.»'-..il l\l \»'-..- UIXKJ !1\.-H|JiH_¢'L.« LJRE i"'U'll'-.19 'U'\'U\.' ii'-..-'L The in'i'-:'i:'a'ne:";t f=._2tti"ie:" suinmiti-;e=:>7 'met at i3weo'ct fez' next foiiowing-,' the «itiictetces. oi the association provides an in1;3ett;.."' \'vi=;mei . ,.¢..' .7 _ 2 .---'..... .-.'-I" ' ~ '1-~'.' . ' .-. #9' . -.I iii;-Liii'JLEJ£Qi€~. not to ;eiee=se ':hen :§=.m:- in iﬂLi!£|L}i{:':.'-'\ cinemegtii .. _ Ex '75 $1 « k i f: \ .§' ,~ z ,» .s/"' .1

1.. .

i<;rna'i:ai<a in i:ontravention of the directions 5-?' KFCC, which is a ciear xzinietion of the provisions _u»nr:i§er Section (ii) of the Cempetition Act, 2002. 2.1.5.: The En'f0rmen't aiso 5ubmi':'ted that the Lmfair and dis£:s'is*=':inai.ory i'es'crictir:ms being if'Tif3C}SEd by i<Fi';'C upon the ciistributors of non-wegionai fiirns in Karnataka is directigi impeding 'che'a%3iii"t'»,I of muiti§3!».'~2>< Operators to screen popuiar fiims and is vioiaitive of Section 41 oﬁhe Act. 2.1.52 According "to the informant, in spite of the Order of the Cammission dated June 1?, 2010 and aisa June 23, 2010, in case of Reiiance Big Entertainment {case of Raven and Ravanan), KFCC had' indulged in simiiar actixrities and imposed similar restrictions cm disicributors and mLiii;ipie:>< owners, which was unfair and unjustified and amounts to a vioiation of the said orders, in direct c.onti'aven°&_'ion of the provisions G1' the Competition Act, 2002. The inr"i:ir:'nant expressed his appi'ehensions that Lzniess :'est:'eined, KFCC wsouid conﬁinpae to impose simiier re5=::'ictions on dis'?;:'ii:ruioz's and rnui'ti;:=ie>< operators in fu'tu.="e.

A .+-.iD§"i'7, wi"c:'~. {nae ii"n*on'na';ir n, iti'ie:'ei'c2s"e the . J'! "F .-:..

( eppiicatieii ';"er imterirn nrder Linder Sec'i:.ion 3?' the r<.::.si;i'einirig %<FCC 'Emnc pLiT'~:i'ﬁg emf direci cu' ine"s:'eL:i: restz'icii<:'xns on we an fiirns i.in':ii c;onciLisic:sn 07' an i;"ii_'.;Uii"'y' or i_in'*.'ii orders. infm'i*netion in no. EC: :3'? ﬂied Ems Eni;e:'neitienei L':-'UL girgainet 2.1.551 Tiie ir'ifL=r':'r'iai;iOn by Ei'C.rE-

\ in':ernetionei iviedia Ltd. " 'gtonciici § . ,v_ r.:.__'_' .--_' WV'. '_< ' aggjearisi ':Z§iE;L:}~i' Eli.' Jim: iiiiaii * 2.1.55 it has been aiieged that members of the iassociation are ;}roi*;ibi':ed from dealing with the pessoris eiwgaged in the exhibitiion and distrii3utior'2 of the fiims who arér not its n'i€:ﬁ's§:ri;3i'5 or an éssociatiion récogiwized ioy Aihifiozoiwioiiiiiiwais aiieged that BJi\/EPA and its members have a coercive mechanism for ensuring "Eh- compiiance of such 23nti~compe'iitive agreerments betx ieen themseives. Army merriber who vioiates the terms of the agreements or acts contran; to the circuiars and directives of BJMPA is isoiated or iaiaciciiateai by it. The £.m°ormant aiso aiieged that the membet'ship of or recognition by EJMPA is an ass:-antiai precondition for doing businesgs of fiim distribution and es-mibitiori in the territory of Bihar and lharkhand.

2.1.55 it has been aiieged that "the informant had acquirod aii rights of é cinematographic film titied "Housefulf" and was approached by a pro;::rieta:'y comtem i\/is. Shree Shreshtha Fiims who is the member of Bﬂx/iPA for acquisition of a iicence to distribufge, ~:=.:<E':ibit and expioit ithe 'fiim in the if-.'i'i'ii'.'O:"K,l of Bihar and Jhaikhanci. The informant and Shree Shr'e;shtha iFiims,. out of free ' .,., . -;. _..,.. . j.,4.:----~ \''l'n ', :,\'. v V . '. ,K ,-. I ~ ,. ' "}' Eh , -':

=-mi? and conga-ni <3n:__~.€~.;~:o' :1sz.L.* he D=sL:sbuts«.m mam 4.? I-'war, ~ . . - .*'» -: .. .. -= ,,. ;.. x :~._ .5 '1' ,.,; = as .5 -\ . w.'.. -..,. .2018 {oi isccrmmg iin: T?'H'3d':.ViCcii mg;-,=,:, Q! the :.mo Him. As r..onom=,m sr.:;-ececiem, to o'i5"%;s"ib *i;s'--:, e:-chii;-ii and :"~.>:g;»ii:-ﬁri: 'ciao d ji:ar'i<;im:=i7<.*§, the {:.~roc?o::or, Cﬁis'tz'ii:mto:' and :::ompeE'5s~:~_f to s'r.--?gisT,er' iirinrs and deciar'a'1:ion and U.i'IC,i€:'iT'LEii'§"!i";'E_.?1 with EaJi!'~.fiP,i'a in "~ ~"">c;iatior":

'\ v' ' ' - . 'I > iT_S rr:e;"a.'1i:.\.€.ar's :.r'i:;it_.u;2'::":g all "=;h-:9 'ij£'n€-'B. own~:-rs an 13% v.-9%' {mo 'FL -- .. I" -- 5 VII' . . ...1. .. ,. ' ' . , ,i..i . '+ - .._ ix: M ma; i<:=an{,~ =o.j;11i<.:L (mo oo not asmsbu the mm, x' '.1 ,'s .;'i 'res'tr%-cténg zmd ot'n«2rwise w%t'hi'mis:iér*-'1 the 2t.1t;S7T. AC.CQf.£i;iDgl..\,h. M/5.; tS;t1:rer:t §t1tre_5_ht_ha. .F:.itm;5.t .rr:,;mr;-.3t,si:t:£e:t.::.i __t_het _in_fQri',n1.a.I'.'at;'t.O sign and execute "documents far R:-giatration of the film with B§fv1PA whE~:'r2 imtiuded dectaration, undertaking, affidavit, acme!' of artterney and stzbrnisaicm of Praducers/ Distributors joint application/agreerrar-.:nt in respect of the above ﬁim. As the deciarations and undertakings and docunfents Contained terms and conditions whEc'n were contrary to and inccmaistent with the Agreement dated 27"' Aprii, 2010, the intarmant. was retuctant to Sign and execute the 381118.

2.1.58 However, in View of the fact that in the absence of registratiorz of the ﬁirn, the mm wauid not be exhibited or reieased. in the territory sf Bihar and Jharkharzd, the infermant had no sther option but tr: stign and execute "be r-* urzdertaking, deciaration, affidavit and p«;>\Ner of attomey e'equir~ed for the reiease of the fiim in the territ-ar',r Edhar and Jhartzhamx'.

3r 2.1.59 The mt-as"mant has sut:»r*n.1..'¥;~::'.wf that dC»c=,.zm«3n:s, a'e--::%aratic»n and undertai-r;ing have tE':~:=3. «affect. at {3} cGntmEEing,. i§.m's't':m--§ ',~,§»'r:~-'1 .._-'_».. ' ..;.».a. . .15 4. .--, «_;§::tiix'.?t.17.§v.2§":, Sz.:,..>;§'y CM t.h{'.' r:.ir:er'r:atogjs"aph ﬁirng, {ii} imp0s~9s sunggxiemezwtarxg (J'§3»§i§;j;E3';'€3i":S or th \ and/ or distributes" which su;3;3is3rnezt\ta1"\_: Qiﬂigatirm. cammises inter--a':ia at i ;

'3.

L. w.rbs :'e'~':'~;ts'it:tEe;m.s an ttue if:z'c::-1-.¢fzz:2sstis'*rg a 'mi for :::ei'10«:i at El \,reai's, {b} adE"u:en'ei':ce the P: ' E-3£!\4:5'.si\, (cjracrzegtatanc: -at E1H'\r'§PA. ,=ixs"i3itratc3:' 'W 3:» 'be-t'v~.'e-$311 the 13:'GduC<3r,/DiatrEbutch',/Eub--d%st2'§ba_rtQr :'«.?g-ar M J'! Agreement tcr the C<.jvnt.r__ary at; anti (ii) ynfaalygegp pez'fc»l'fna:wce at the agreement t_>etwe=.-an the pf't'_>dl_lCel' and distributor or di5ti'il3u'tc:r and sub--distritu_ztor subjelz': to acmptaricse of various unfail' and discriminatory conditions d=a<:.laratiC»n,. undertaking and documents.

211.60 Accmding t5 informant, based cm such declarations and undertalclngs and documents, BJNIPAK initially issues a letter to show~r;ause why action should not be take-n and penalty imposeld for alleged unauthorized sczieeziiawg of the film thz"r.>=..ugh satellite channel, failing which action wgulcl be taken including penalty and lmpcwsiticm of ban 'frcam dealing with any member. Tl'lEl'€3<'31'iiL'r'.'l' BJMPA after considering the show cause notice by letter imposes a penalty fer tlﬁe ptirparted illegal telecast at Satellite rights. 2.1.63. The l:'lfo:'rn-smt has brought must that B,lMP;i\ Had imposed penalties .L2p0n 'tl'i»:--3 lm"ormant such as by letter datecl 12.18.2009 a §3E";'iE;llZ'g' of Rs. :1, 00,000} was im.;;3r;.vs::3d. an lm'::>s'mant 5901' telecestirlg tin film 'Herr:-5' on sat.elli'é:e clwlwne-ls, Sincze, 'tile lr:'i0rm.=.mt dim not pay' the =;>ena.ltg.»' lnmposed '=33! l:':.ll"\-fl?-"' 2 L"

therefore, «:au'::ii:»n;'Cil*c lar datead 31.192 .. ...., .. '.....'-..: ..,. .,......'r-- . .~ -5 .~ .. '.~. ..~ 7P\ :!,.~'. c.:3u.,,o,s.;;g all is dlstnbutur m:.~mr.»-.~.~.as not wze."_l= inf-a:r',»m-.»nt.. :C:cE'Hi'.l>Cal Show «:"-'use let.ters; datszecl 2'.7.DE».2iQ*38, 3G.UE.2*"\O?, 9.2088, 2Z?='.G3..2DD9 and 17.02.2009; C'.-l'ClE'l"S lmggclsing pcanalty 2.-6.82.2008, 0909.2-'308, ,.~.= ,. -u .. -mu... » .- --.~! :.~ . *r\** *7": "F ~ :4 ..~ '. "A l.lZ:.<.l:...:0{}:iA, c.:llC1 L£}L.li.l{'3ll,«'L,:!LL,llL§l'3 acted JO Ci gut) , '.52 3.105, .;.. 3..'\J.£.\.»'\4':-9., \:'v'Ei.:"'E anti l:.las:4e«:l e:»{--;a§ns'=; tl'u.=3 §;':l'~:_1rmant in liurth-:~3r, Lilli./§P.i>». in reaps-Ct crl this film "\:'eer", "s'*'a;:éthsl x' s' v i - ' .- -* -~ - -4-. . ' , Sl":OW CE3UE}-E' nc.r%:ic.e.; dated. .l.Ll.L38,2'Ll;C3, EC) Show té shouici not be impciseci" failing which BJMPA threatened to ban the im"c»rmant from deaiing with its members.

Accarding to the 15*-.fm'n1ant, certain penalties were paid by the informant ei'i:n+ar ciirectiy to BJMPA cw disti'ibutm',/sub--cii5tributor, which were im;:>c:>sed upon certain fiims exhibited by it on the teievisicin émd sateiiite because of tine apprehension Qf harm vmicii couid have been accrueci due to the non~reieia»se and exhibition of the upcoming fiims in the ter1"itr::<ry of the Bihar and Jharimand. According to the informant, in iast three years, a sum of Rs. 21 Laiahs has been coiiected by 83?»/ii?'A from it, 2.1.63 The infcsrm;-int alse submitted that it had reascin 'to beiieve that in case cf the fiim "i/eer'", Pc_:zatnsf7ani.:z"' and "Housiefuh"' 8JI'v'!1+"-'A, wiii an the faiiure of the informant to pay the penaim impcase a ban 'from deaiing with its rnernbers consequent in which the !nic»i*mant wcmid be disabled and prevented imm distributing and £"-.-}(h§§J§"'£iI'ig the iorthccming Hiiidi cinematograpn fiim "'Anj'oana .»'-'ir:_j{::mi"' scheduied to be ini:-"~i" in the tei"i'it»:>ry' of Biiiai" md Ll .}nari<i'ia nci 2fi.C2E.=.Z"?1D

2..1iE»a§--'i'he infCm'nanT.. has tiiat BJi'v'aP.r'»' in 3 ;;*.~:;>:»i";ie:1::'i C$i"i"iii1E3i"iCE' Fiid \ Em; \»'ii"i;Lse (Ii po::ii;ici:"i of 3ti'e:'igti'i is abie in caznpesi the =;iaSiri3*;:u?';:* Pr \'-r L: LL) !..,..r..~.». W \v-s&\§'-'L~r-- » "NJ 1", cm ..._.i 4. ...L. ,3- 1.... ;.g__ i:....r....:.. ,(_.~...,J .J..«.««--§.....§.--.~.\».'.... L1C'L.UlH- H'; Hl'.'.'fHHJL ..n GSIU C.' '.."JH,'§',CU LU :1 ELSE . Hit' LIHICH 0' HJ Uibi.-i3EiISEiL'?LL_?i3' i'estric'tions 'iiT'i;')i'.'JS:":"-C': by if againsi its in to '§'u.1i'iii information in case no. 58 ﬁieci by LETV 1-Scsftware Cemmunitations Limite¢_i §ﬂ 2.1.65 Anether' 'mfm'mati0r'i against Bii\«'»;PA was ﬂied in cage mg, 58 by LJTV Software Communications Limited on 27.'.i.G.2.01Q. 2.1.86 it was aiigged in the inf<:>rmatioi10n the iines of im'ormati«:>n filed in case na. 50 that BJMPA through the agreements whicii are reﬂecteci in its Men'iorandum and Articies of Association, mandates its members not to deai with or to do business \'\!i'E§'i (i) persom; engaged in the exhibition and distribution of films who are barred {put on caution iisti by the association or

(ii) perscms who are not its members. The: imﬁarmant has aii»:-zged that aii these activities, agreements understandings and arrangements between the members of the association are acticins in ccmc.ei't, and attract 'r.i'ie provisions of the Cc>mp~etitii:>n Act.

2.1.67 /-\CCOFdii'ig to the: ii"iiCDi'i'i'iai'iT.'. explicit agreeiTu=2ii:ts between the members of '£:'..i.\/iP.l3~. :'ei:ieC.i::~'=s. in the WE'§'i"EQ!"Eii'iCiLii§'i -3'? i' ,L'~.ssocia'%;i-.:m and Ruies and Rec;uiati=:»ns ii'ic:.is.iciing "Ri'-i»3s its Pictui'»:=." an-Ci "'Es:iies fat' L'*a':.3\:':

1..

w '.

.» ...,..:I." -..;.:.. r: ....!v' r::.,.i:'*.,~. -, . 2..., ......i ...'.:..,...- ...... :.wiiu_.*C>i §»,i':ii3'is.';-.'.3ii uf i"siFHE- . ""*"\\*"ir'.Lx by ii":E;>E :x.£:*:,;> :i::L.': M:5d:ai:w:i;. mi:

-5-?-

F1 ags'eemei'its as i'-zﬁiecteci in the i\/i*E3i'i"iOi"Esi'iCiL:2i":'i ﬁvtitzies of #>.sse£:iati<m as aiso decisions and acti«:ms taken in the C<'3Ui'S€, iimit, c.cmtmi and rwstrict the \.

ciis::'ibuti<:.>i'i, e><i"iii3iti<;ari anti e>:pi0atat:0n oi' iiizitis in "ths-i T.E:i":'i'i"""_'. The ii":i-C=S"i'i"iE3i"i'i has aiiegr:-Ci that Ruies. 5 8 of the T' v' v-~ - ,.~ 1 I '\' mand:atory tot =3vei"~,«' him if;-i'C¥-CjLiC{%i' to D5} memiaer th 1:" 3

'ha, "~-

5.,\) ciocument titied Producers, Dis.%ributors Joint App!ica'ci<;>n,:'Agr'ieiement ("hereinafter i'ef§rr»ed to a;ijf'Agreernerat"') with -annejxes thereto being forms of a Eiecfiéiiatizﬁii and Und'e.r'i:aVii<i:1g"t>'»,r fine'Mi7'ri5<:ii3r:ei'"a.%i§' "[vjiE$i'Ji'ri"i;)i'.J'i."('3I":-él ﬁéiiiézr oi' £>_.i:tQme',v' of the Producer, and a ciraft Afiidavii; of the Prcadmer and C0p\,Irigi'i": Hoider, if the producer is desirm..=s sf iicensing its film fax' distribution to any diStribu'tor regiﬁered with the agsociation. The said annexes 'to the Agreement provide for unreasoriabiy long imidback pericads of six months for cabie TV, CD, Video and disc rights and iioidbaszk period of five years before sateiiite exhibition of the fiim from the date of premier reiease of the fiim in India.

2.1.69 _Further, the Articies of -'ASS{)(:i"atiG{} iais0_provide for suspensimiicai membership in the event a member cieais with a non~n"ii~3mber contraw to ti'. . Articles of Association and the mies frameci by the associaticm,' in the event the Q'istriiautcsr,/'sub«dis':ribLitar,'tiieatre awa".e:"s;'e>c'ni%3itors enters into an agi'-_=.em-an': for ciistrii:>u'tiom of a ﬂim with pi'-oducer w_h-:2 is not member of the assciciatisiw C31' Wm doves no': regisiia his ﬁim wii_i'n the a:<-:~0r;iaiii«:»n Cir wim put on cautiizsn iist (iaiack iisti s:=..:i;'i'i a:ii::tiii9Lsi:.oi';'=_:i.ii.:s~di:trii3utm' -*.he:;ai:s'e igawners,/e:<hii:aiﬁoi's is 1'ii'aanc;iaii'y' §._3.{'3§Aia§i..4-'.',',"?.(-.3; T.i'~-° a-s.see:ia':ic»n and his !'s..

' i-.-' ii-'i~:--:moes":+i'ai;;i is isa.-we 'L0 '{E:"i'i":i§"xBfLEd.

E , .\ .. )2 . V I :- _>i__ . _ ii."".'\ +i's2'c'.'.1'c 'H-.5) .:u\~'i'sx}'\i1'.-'*u".' mi". .L.".".'T' 1.2 r'1\..'..'r'\.z:>t'£ :'f\:iC'§': i. H T:'\rC LAN.-ll Lil' i.--LA|../'1 l.IlA.---- '.«n".(l)ih/IL\.-'(---J': LIKN-ak'\| \A- \-l \'\-'ll\.~J' 'J; I.otA.JI.I 1 ." \\,I|..-

\ - -. " '-' 4." " 17 .-.- m. » .--.1» -- ~'- »-- |'\"V*'V"l »- .» "~.'- Kn '~. 3- - « ~.'ZiiC'c3.~'-\§'1.ii3i=_ii'i£<§ me: him 0; 3 L}:OCiU-'...':3§ w'n«_: 3:0: '.:'z':fi':ii3::'i me E~:i»:C:C.ic.-T.aCm an 1 ,-, . .-.- '.»'»x,- 3. .1.' ~--,._ .__-... - W .. i. -,. .. /. ., .. ~. ~'~'i.jJ\_-'+;_-.-._; 3'; Liar: c;f,\bL)-Ci4i.xi!.m iii J38 isf: iL.ff.i';y,. :3 §_.iOQi.}Lt-ii v'\'i!O i*3=L'_;-'_\ I ./,.,w.-I-/r-w..-;,,,, 3 '/1' a member at the assmciation or refuses to regis'ter his him with the association is not ahowecf to d§strjbx,;te or even retease his Him in the Tezrritory.

2.1.71 in View at the existing ru§es. and regulations, the informant is ieft with no option but to be a member 01' the association and in View at the domhxant position of the agsociatkhw in the Termary, the informant is forced to regigter"

its ﬁims with the asscnziationubefore reiease in the Terri'm:",»', and enter into the Agreement, and have the same submitted to the association.

-2.1.7ZThe !n'forn':aht has aheged that the associatimw has also started asking for capies of «:.cm'E:racts that are signed between the reievaht parties as oppased to earher, when they cmiy required submission of a tsigned undertaking ta ascertain whether it is. Minimum Guarantee or a commission contract and then it LmEawfuiE\,r interferes in the transactions and mhtracts between prQdu<:ers/ di5tr§butc,n's/ exhibitors and impose cohditiohs upon the d§stx'ii3utQrs and e.><hibito:'s over anti above the ctm'1merC.Eai Lmciewstahciihg amved hetw¢=3eh the protiucet' and distrihutm' and]-or dEsta'§!:)ut«:>r' and its distnhut-:3r' M/S. Aura h.»'§~:3vis:a:z., whrip had .3aistz'ibL.1ted the {hm "RA 5 ""6 mih,-""

of which thr-3 tatie h::>%de1'wats the Eh'f~:3t'maht. The -"autiah East ihcludsmi the Le name of the h'1t'o:'m=ht aim. "z"n€: Shformaht é;*~.";:'r';ec3"':;.:t~'-'hr "T , I.-'.010 the ass<:>c1at'=«:.>n e:ht:i~;>:2'2:"wr \_| C? as ted pt:-3 m be r 3- cautitm 135?. caiiihg L3§3C-F1 the .

been issued and the grounds for the Enciusiah of the name of the informant in the caution iist.

2.1.74 The informant. further :::-aiied upon the associatior: te expiain the urgency behind the issuance of the caution iist by the asscsciatioh when the assoiziaticm was aware that the in'h:»:'rriant's film "We Are i7amiiy" was scheduled for reiease on September 3, 2{.i1U. However, as on date 01' fiiing the ienfo:'maiticm,. the infc:»rmant did not receive a repiy to the said ietter dated September' 3, 201.0. However, since the ﬁim was. reieased, the matter was therefore net pursued.

2.1.75 According to the infmmaht, thE'FEa'i:"tE!:, the informant came across a caution list pubiished by the associatien Respondent Eh the fortnigh't:iy 8 & 3. M.P.A Fiim Buiietih i.e. Voi. ><.>{i No.11 pubiished on 15th September, 2010, wherein the name of Mr. Ronnie Screwvaia, the Managing Director of the 'ahfor riaht, had been puhiished and a. penaity at Rs. 5,GO,UDO/'-- Rupees Five Lat:

c;>ni3-I) was pui";amtecii\,/ impesed Cm the ihi':3i"n1ah': far' sateiiite e><hii3i'tir3'n at the 'fiim "'i<Ilus'i:»a5::"s" on Sateiiite Ci'i&ii'ii'iII&iS. Ti';-= 53"! iisﬁ; aise \r~.Iam~e:d aii the . V .... -.£ ~.' _. .---.--. ' I . rw . ir...,i : l. 1. .1'. , .. .- z*nems3ie:.~.aus1 aS:uCi8t:0ﬂ hat to -11:43: xmth the im =.mc.=h'=:. 2 J 7*: Th: E'n'0.*r:":ant has statecl' '.t".t Swazi ezmmci this ~$Z€~§.L§iii£'>§':

5," ,,='C-...:i... ,., ;.,.' .41....

am »...«t..n.=iL:s,ii..ui: ii: i. .2

-A .. .~ ._.;=._. _, 1,... .. x. , .

U":C:r3.Ci iL:.i.i'}-' :€:'.:..€:x~'_-3'3 in L _ first aired eh "«::eicn's"" -

pubiished the said caution iist in View ofjthis 50 caiied breach of condition, ;g_ngi:;ei3g.:he _i"aci:._ti1a:_i' .t.i.1is was an eereemeent beeti/iieen the inkwmant and K?3§Ji.,ii'C'i'iEii"ii_.i'. that was submitted to the iassociation and to W-mch we assoeiatien was not a party.

2.1.77 According to the iniormarit, cause of action for breach of the Agreement, and consequent iosses, if any,"wi1i«:h wouici have' been suffered an accoimt oi "eariy" sateiiite emieitatien of the Him, wouici have been suffered by iiapurchanti, and not by the aseeciatien. iéapurchand had not ﬂied cenipiairwts and therefore under no circtzmstances did the assrsicziatien have any iocus stand': to raise any ciaims or penalties against the ¥ni'"c::rmant er intervene in the mettei'. The im'c::i'm:-mt caiied upon the association to withdraw the said caution iist by their ietter dated October 4, 2010. No repiy, however, was received ta the ietter til! the date of fiiing the informatiion. 2.1.78 ,z'--\«:cordii"ig to the informant, the instant ini'C»i*mation had been fiieci ta restrain the associa'=:i-an i"r::>n". oi3§.?:m-:2'-ring or interfering with release ».

~..

cu' i'erti1c:;emi'ng t"'aim:~ tn" w'nii:h the. ii":'{C»i'i'i"':'"cii'i"-C is titie i'2r:rid£-3:'. The interment E:X$2!i"€;'$SECi its aep:'eai'i-:ansic3n 'that tmieag it the so caiied ;;3ei'iait\,: amt: "

LiE":t, Q. i .-... M'; -' - .-. ' ' -L,-. ""5,-... v .§<~' .".~.;...( ,, 4.'. ... Mo'? .-. -5»--.u 1 V €=.;~.:.C.3-t,i23UC;~.F'"i \r'\'UUid ii"\.L=;=.:'u-;i€--3 ~Juii_€'i i3i:sLs:i;>-,£tzC>ii vi 5' ' ii" ' ti": e i :1 is i' m a tit.

2.179 "i"he ini'ern'ie:"it hag ='iiege0'. that asseciati-:>:'i is':tei'i-em-:5» witi'i 1» x.. '7... «J vir:.»iat.ive cm' the i'ig;;i'ats gi'::ii"i"'<«:i ta tn': is " ' Lt.' \.

i:>inding cm "i:i'iem in $35 ﬂ"iLiC§"= as t%'i--=»,I iimit enci tti-3;r'ita'c;i ' =e2'en't i"=:;im'ie=*.s. is': ti'~ i"r:e:'i<;t. can=iii'tiQi"as much as it is hot commerciaiiy viabie for the ;:2roduc;ers,fc:iistriiautors to adhere to such irraticijai hoidbacks evspeciaiiyin 'Ci"2E7Ci.1i'i'§E'i'i3.; mg=.ir¥<E_2t 5§ehario»»wi}"e._r'ib the' z::iéi'neirid aiter period, There wiii be rm market for the 'fiims after 5 years at the reiease of s.i_i€.i". iiims and 'E'ii€'i'€fOi"E the hoidbacit aofvi2rsei'~' ,; affects the expiczitation of the 'iiims.

11,80 The infcrrmemt has submitted that as a re-suit cf the said caution iist no distributor/exiiibitm' in the Territory may deal with the informant under apprehension of being iinamgiaiiv penaiized or dehariwad 'i'n:>m the assaciatiah. The practice foiiowed by the association of issuing such a caution iist, 50 as to impair the business of the producers/distributors is in gross abuse of ité' dominant position in the territory uhdusr its. controi. 2.1.81 The in'i'm'maht aiso submitted that its next film "6 zaarish" was sc:hec:iuied far rzaiease on i\iovs=:mbs=3:r 1E3,20'_i.O. Since the asseciation had i"aiEed_ ans': hegiected to reply to the letters dated {,':3,Q'E3.2U1O and {)!i,1G.2(.'3'_1{) "i;he aszmsciatitm, ini'-mmaht its ag:>;;::v'eheiws.itm 3I\..

that uniess it paia thte. {ac-:nai'w amouiﬁ, the assaciati-C-h wouid inte"i'¢i"e with "..' ,--' .--~ '»~ .-"~. .u L- \ .----L . .- I --- 41". .- -+-- i,--- - .--.+ in-.; iL;L£Li-31: Q? ma to; ts:-Loimmg mam of *9 '.»ifQ5'cTia'.:L.

1.» 1»...

%n'%ci:'matic:ri case has, SE ha: Li'Ts'\." Si-:)1°*':ware i:c:»m:rtt.§s'tic;23:tim~:s Lienitiegafi §:~.i§}£?f:E

2.} ' Zillilé ag.;:':ii'isi; 'B_W PA was i'ii»;d -cm f_,i'ii~51(C;. 'i: E} e association 'in reiease of forthcoming films and taking cognizance of that the Commission h§adTgrahte_Vd; an infugerirra relief to the Petitioner by way of an order deed? f\io\¢eh1beWi8, 203.0:

2.1.83Sineem*forman't's next Wm "Tees Maer Khan" was scheduied for release on December 24, 2010, it had thereaﬁer approached' the Commission by way of a nwiscelismeous appﬁcation dated December 7, 2015, whereby Informant prayed for extension of order dated November 18, 11010 passed in information No.58/2.010. to their forthcoming fiirh "Tees Maar Khan" as weli. The Commission after considering the e*.°ot'es.a'zd appiication dated. December ?, 201.0, in its meeting dated December 111, 2010 had observed that the inforhnant had ear"Eier"ﬁ!e<:i the appiication under' section 323 for reiease of another ﬁim. Therefore fresh appiicatéon was needed to be ﬂied under the Competition Am'. for order' Lmcies' section 33 in respect of fo:*'theom'mg fﬁms.

2.1.84 The informa=;1't 'm the 'msi:Nent ihfo:':'ha'€;ion on the lines of §mfom*-.a*;ion m ' no. 58 sajijmitted th='t cow Mons ihciuding 'zihose of ir:'a,+.ioha! ho1d'oac.E<:s imposed 'ox! the eh':i~coa'n;:>e':it%vas3 vioi 1 et%x:e 1. me rigzhfrs gram'.ed to the mformant. Such iews not 1:zin«;"~*'sg on the iI"1'§:fj:>§'i'"' .! ,. -.,. :....~ ~ - _..» - .+u.t.--. '---\ :. _s:.s.': . M:

I1'«.Ul..:':c:$T...*t{3\,-' Em-,2'; emi ~:.on-.20! the :\«..',*.>r:.w G: memm mm1e:.e-;:. 1:: ;s~ -.-- x.-

,. __1, .

!'.:a:l\'-'31.

2..3..8SThe m'?o:'man.t on the hnesl of rsuh.miss§o;'1s. made in Case no, 5: also re-

's:ez'a*'~;ed that the pse.c;ti:<2 i7o'ziowec:5 by the assoriﬂ' '.4: Ca -

(:1

-~ .1 x hats. impair 1';he Eiauaiheiss of producers/ckistrihs.,z'i;o:'% zafmc said Cautﬁon 31:21: no -JismbLstor;'e:<hihitm' in the ''§'ez''ritc>s'y§ \ IT; ' informant under aytipreiiemsicin of being 'iii'ianciaiis,i penaiized or debarred from the association.

2.1.86"i'he in'-forrnant has requested that the caution iists issued against Tthua informant be quashed and set aside and the asaaciation be restrained {Tom imposing any Lmfair. and unjustified restrictions iinciuciing unreasonabie hold hack periczds and/or from in any rnarmer' obstructing, impeding or hindering the exhibition and exiaioitation of informanfs fcirthcoming fiims Jiees Mai' Khan, No One Killed Jessica, Saat Khoon Maai, Thank you and Chiiiar Party, My friend Pin'-.0, Deihi Beiiy anci ilihmbi Ghat and/or in iwespect of any other ﬁims as may be reieased from time to time which impair the fundamentai rights of the-informant of free trade and moiession. Pi'<:«ce=.~ee:iings far irriierim reiief and iwima-facie Urciers 0'? 'the Cemmission

3. Aﬁier considering the inforrriaticm and having found that a prima facie case i'3>:isi:s in aii these cases, the Commissixrm passeiﬁ an C)'i"d(~"3i' under' sec'-:i<:m 26(1) ciii'eci:ii1g DE 'i:«:= czmduct ii"i\I'E*.S'{i§:3i:iOi"i inita the maitires". iirima c:»rci£--:=i" L-mci imiei"im urﬁer in case mi. cf ?_?"'_fi.€} .., ..

\.)..1 in cage no. :5 C3'? 2£i3.{}, tine: €Z«;:>mmissi<3i"i passed order F~., I...

'3 ;"\ "2 -'r _t"_ : LI ') , ,1 \,! _L L:

"T 1' i uhdei* Secticm Ziiili of the , directtiiig 'the D6 is c.<tmc.iu::'c an iiwestig:--iti<>z"i in the The Commissicm after ::«:sn3idei'irig the irii0i'mati-mi and a§iega'{io"v' .3") i3z'«:.mghi; out "the i:'n"0n'i";a:'ii. aiso Em i*n.3:€:i'im <:»i'ci»3i 17.05.2018 i'£:'S'i;i'ail'ii:'i[:'_~; the Oi?'--1 'fmnm ta!-:ing any action o'.ii'e«:i'. indir'e::? exhii3ii_Qi' 'from exiiibiiihg the fiim "'Raavam"' :32' "Fzaxranah H

-*2 \ § u n ;.a '....v »..f~.

S if with £=;~:iiib':t«::»i's wiiiing anof ~:iesii'o.w "'~'«*~ m'hibi?§ﬁ' interim Grder initiaiiy was to be effecti\.:e tiii 22.06.2910 and omtrortunitxx was \ given to both she .p_a.rti,es. The Cemmesioﬁ aim!' 3"*.s'%.3."".,.8. ?}0th,Fh€_Par'ties, later on 'ir§r_'is'3 erder dated 23.06.2010 canrinued the interim order izvewandu 22.06.T:O1O tiii further orriers. i Prime facie order and interim order in case £13.45 3*? 2013 3.2 in case no. 45 of 2010, order u/5 ?.6(1f: was passed on 2éi.0S.2{5i0 urrcier Section 26(1} of the Act, directing the DE to cenducr. an invesrigatien in the case, Apart from 'the other reiiefs the Reliance Media also requested for an irrrerim order by restraining the KFCC from imposing any restriction in reiatiori rd suppiy Cif prints Cir firm 'Larangey Parindey' riii the firiai disposal of the matter. The Reiiarice Media aise reqbes'red to restrain': the KFCC from passing any such directions in regard to the future iiims of the Reiiance Media tiii the fine! dispesai of the maiier. The matter was considered for interim order on 09.99.2010. The interim Carder was passed the same day' restraining KFCC from rairirig any action and irrrpesirsg 5-am; restri«:.r.io11s direct or indirect to prevent am! pr'0ciLrc.er' or C§iS'7;i"ii*JU'ECJi' r'eiarir.>r: '%;=:» sis-,";»;:ii'y cs'? ;;2r'im",s "*KZ:H':£":E.'i'..'<r:3 or nor; i<I.arinacia is the irirormarﬁg, if the ;3FQ<Z§LiCEi"S car distribLirr;:r is wiiiing arid desirou.s so sw,:spi*y* free srrne to <.;r-re. inforrriiarrt fmr' e'.><'hibitEr32'i in the 'terri"ror\g of Ka rrra'i:a ka.

» - - * : - __ ' , S * N, , * A &'_' ,n A P$"§:":".a fame <:.*!'*.'i~3$' iii'-'arm: ~!*H."§E§' in » ase viii an .2; I'rru:l : rg "me Cerm'ni.s5icm on 25.U8.2C3fi.G in 'mcvwever, rat» inr;erim was passed in the Case sibice "

oiuserxresd 'trier the iiim "P-eepii Li3eve" «:n" the i;'n'or'r"aarrt W'

-»»»~ ML _,.:...','\. ,~m'. .. ..,< '1' «*\-ma 5'. an 8.08.3-U.,U gird C'iLJE'}t i,=_.«'~.~ 3; \''\-'do ;:»ess<s.r,z on e1.C.*E:.4_{}J_O.~.»-. /I-t--»u»g.>n,,,~ Prime facie orderand §n_'t:é:rir;': Qrdeif in Case No. 4? ::f2{)_1G 3:'? 20.10, ékdeﬁr L2;/5 26(1) was ﬁpassed ﬁn A2%b3.O'8.25T=.O' d'ufe«:ting the DE to c::::m:1uc:'t an inves't'iga*t¥c.-rt in the Case. As far as prayer passing interim cvrder under Section 33 of the Act is concerned, the matter' was "Med for 7"' Sep'te_;j:i3er.. 2010 Egsefore the Comamssioaw. As. the film 'Aashaye'm' was already released Le. on 27th August, 2010 therefore it was considrzrecl that interim reiief 'asked has became infructuous. The advocate for mformam: ﬂied additimzal submissions amng with affidavit on\ 8" S-eptember, 2010 stating that the mformantwas appremending imposition of resmctions on the exiwébitiun of the fiims of the tnformant in near future by the Opposite Party. A R5':

of 20 films without specifying the date rrzf rmease was Sim endesed. The Commission mated that none of 20 aforeswantianed 1"ih~ns was going to be reieased in the fcrthcommg week, After c-:msTader'mg the additionai '-3U?'J§'}'iiSSiCiI"rS 'Eﬂed by imhrmam: arzwf. mat 52:4: nmgsions of advocate fer the 1n'fmma:'s't, C~:3m=.'w'ss3icrn de~;id:--_-.d not to graass am,' int.ez'%rn ardes" 'an the and net to consider the additicmai submissi L. 4/' 3.5 in case no, :18 0? 1E.()3.{), orrjer u/5 Z31':3{1"a was time for the same tiii 27.09.2010. The informants vide ietter dated 27.09.2010 submitted additionai information 3.6 Accom'ir'ig to the informant_. in the "Facts and Cii'i:Lm"istam:es of the case an-:5 in the interest of justice, the C.ommissien inlay pass an erder staying the Uperation of the ietizeifs/notirzes dated May 28,2010 and iuiy 08,2010 of KFCC and aiso restrain the association fmm imposing any further direct or indirect restrictions can the release of non-regiariai films untii the ccinciusion of the inquiry by this Hon'i3ie Commission.

3.7 After ixmsiidering the submissiens of the im°c:rmam: and the Opposite Party, the Commission passed an order dated 26.1D.2Q1G under Secticm 33 of the Act, dismissing the prayer of the informant. Th€:"ii'i'tEi'iiT1 reiief was itrund not iiabie sim:ei't was noted that the interim reiief prayetzi for by the Informant was e.><actiy the same which he has sought as finai reiief.

Prime facie greet and intierim order in Case iiia. Si} :3"? 2€if.€i 3.8 in case no. Si} of 283.0, C}i"L..E'i' L;/s was p:;i:::~:«:«:r:i cm 1i:'i..Q(_;:5.::f1':3 eiirecting the D63 to ctmduist an iiwestigatioi'i in the case -"' . reiieie the im"om'iant aiso recgiieste-:13 fez' interim r::v;*§e:' siiwzting Bi'./'i.W% not te impede 2:)? its fortiii:omir'ig; iiims. We Cemmissicm order"

.--",~. _ vv * ' ..., ...c..«:.-.. 'L... -.« .r.......,.. :. .-,...:.-h, ..-n.s...:n..:m. :.- afcd 3f:'.L§E3.£Q1.i. 3C.".>;{iL'J!iliil\_' if; . Bii'\r"ii"r-x iiuiii ii"i7.;.ru:»i;i>Ls, may H~~x<.aii.i.iUii in .~i-'1--"_... 4-.\~ ,.ql.--\,--.,. ' __,.'«' 352$.-V "';'\ ..'.... ..--, A .»\'*\--\>*1'{'"

ii:.'ie.a.i~.> La) i'C,!'C.'.'.1L)E ma imii r-xii}c1r}iic:.'mi}-.:1c,x:, O3." 1.3.C*'i i .....x.

Prima 'iacie zzrder and interim orcier in cage :19. S8 at 3i3:i.Q . 3,9 " .tin1.cais.e ..no. 58"off...2Q1.0,...ardtert Au/st 2»B(:l'} was .,0as.se.d icmw1i5.1t1,t2.01G directing the D6 to ccmciuct an investigatian in t"m-".- .. in this case, aiso apart from the other reliefs the informant aise tequesteci for an intearim order directing BJi\/iPA not ttv impede reiease at its fmthcoming iiims. The Commission passed order "date«:i Zi.8.11.2GIf'_i_ restraining the BJMPA from imposing any restrictian in reiation to reiease of film "Gu2aarish". The informant aiso ﬂied appiication under section 33 of the Act for exteriding the order dated 1E§.Ti.3..20l1 to other forthcoming ﬁims inciuciing Tees Mar Khan. i--iowevet', considering that the appiication for interim relief pertains ta haw fiims, the Commiasiori decided not to entertain the petition of the informant and advised that a fresh application is requireci tci beiiiied. Prime faciia €.}%'d:?Li' and interim eririer in Case Na, 5% at Ztkiﬁ U.) i---5 C3 :7 C") C1.) rm (D 3 Cl C":

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:3 in B.ii\«'i%ﬁ'a mt irnpecie wziease. of its i'o:'thcomii*;g iiim-5. The CDi'i'1i'TiiSSiC!i'i pas.3eé; ' i i-** »- * -~ - " ' '. ..,. .r'.,..(.~:..

C3§'('iE3' =:z.«:z-t.t:t§ .:a'.1.2..£i).1l iiie B,ai'~«'iP.»'--". I' - im 2;';-*i;3=_:-;»;;:

ex' i'eia'":ic3:"a ta teiease r.' its tiim Wla€-ii' i<i"i§m".

isw'eStigati§~j'i bx! W3 51' Th . .» ,-"' ma"-+..,. , ,.,...'..'..i,. A« ...-r,-R. .. . r' -.»~ +1. ., " j'.v'-1'. LL.' ,I- 4. . .-' _.~' i we Ch: :;zit'~. zetciiiiiig the \)1t1:?'.§:'\.2HLi»';f: .;=:.acm_>:~. .é,f_.«=_i,- rs-i tit; HCL, CQi7\3UL{€§} 'K

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'Saw W11 in 55». 05. wt: 9' cm .11;-=r:ji':ei t..i>~ 3:' \ ~ .~ suppierrientary investigation based on the orders er' the Cerranwissierr dated 24.02.2013. on r.er'rein issues and submitted separate reperss of investigeftien in aii these cases.

4.1 After examining replies received from the eppesite parties and documents suppiied by 'tide information provider, {)6 has come 't0 the ccmciusion that the reievarrt product market in this case is the market of services rericiered by the .4 exhibitors in exinibitirm of feature fiims in cinema haiis. The reievarxt gerngrarnhic market has been determinezi es territorie.s under the contrei ef respeﬂive aissociations. The reievant market, therefere, has been determined as the rnarket of screeniri ﬁlms in the eomei hicari area under the sontroi of D r respective associations. Tims, for KFCC, whiie screening films in the area of its }uris«:£ir;tion in the state of Karnataka has been cieitermineci as the reievarrt; market, for Eastern iririia Motirm Pi«:r_ure Asseciaigien, §<r;zi.i<ata, the reievant geographic mari<er_ has been determined as the State of West Bengai. Simiiariy far other" as-_:ocietier».s, areas (3? their opereiiorrs enci c=:".»ri'?_'roi have been taker:

:, GS ,, he reievar'i'='; g,§eogi'a;:»i'zic marizet 'rrirhiie SCi'FjEﬁi3'\g ef fiims been c.%e'rei'mirreo.' the prorziiict mari:.eir;. .t1'fi;er e:><'>rrsirrir:g ithe p:"Cw'§E:iDr': cu' Seeiierr oi the /'~'>.(:'i, DB has r;.i;.»m:;iuCier.i 44- L was being a non~t;cm'm'aerr_:iei C}i"'€_§Ei:'\."..-'iE;"3!C)l'3_, i<F-Cs"' .- 1:. -' ~:.3'3"~:"'};< "fr '»;.:)r"I*'; 1 '7: '1 '2: '«''*-«.-:3 £~r""" ':4 :4 Evita" A' qr?! . , :Yl_(,:: iii U: .4...\..'-.:'...\"i 44:4 ?-| Line. t ..'~..* HO 1 x.--_ C \ x z \-..:'x u .\.i c<..rzsti'ru"ce a group within the meenin. ef Seectieiw f read with Se 'I Cemee'?;i"tiori .»'»'=i<:'r. 2ZiI1OZ'..

e>:»ierc:' dominanize. Thus, it carmot aiso be said that members of the associatioin have d We" ¢*D'W"e-' eCi9e?iee%f%if~'e?>i' WE-'«?:'??_*e_-'i»"$. associa'i_'iQns mm'. the dominant piax,/ers. in the relevant market within the meaning of the Act, then 'the entire aiiegationis oftiie iriicirmam: under Section 4 remain Lirisubstamiateci. Based u;:.~on'abcwe, D6 has conciuded that he case can be made out against KFCC and ether'-associationa under Section 4 of the Act.

4,3 [)6 consequemiy examined the aiiegationis against KFCC and other associations under the provisions; of sec.'I.ic~n 3 of the Act. E(FC€Z(GP in case he. 25, 41, 45, £1? and 4-8} 4.4 As regarcis KFCC, it has been brought out that it is an association of fiim producers, theatre owners and eiistribui:c3rs having about 5000 members. it acts as a reguEati:>i'y body so far as prc.u:iu<:i:ion, r.2'is'tribu'%:icm and e>r.hibi:ic.m of ﬁlms by its members in the tewiterxg of i<a:'ne.*:aka is ::om:.eimed. The giv-f--.~s. di:'eC.i:ionS i_e'E'a'.s memi;1ei's 'time regi-';'»n*i amzti r:0n~a'egiQnai i"i1ri':s in "Fae '§.'F:.i'i'i§",Oi"'_.:' «:»'i i-=iama'tei='"i it xx').

Oi" n0n--afegi<3:':ai iiii'i'i5 is': Eimiteo' :"1umber of "theatres C!w'Ez'ig *~.'i"3i;

-. .. .7 ' \..,,',.._.' ,.....J ,, \' . 5:3... - 5.. .- two weeks. of *~;he=i ieieebe QHLJ L3 .|iO¥§*'i\'.'}HHc.'«dE3 mm We :.;.F3

-.r,: . in r-§c~.Q:~mr.1:' in '.:.¢-mgr!-:11/3 rxrx ::nI~%'.-3r i"'.n.r.-'w \r.1:'.'u:>Erc ﬁn' ':*;c r;;~.lr;qcQ in r~,Hm-.3r -Him-1 \..*',Cll\.4{I,L.Iv.' {ii Ih\aﬂ('!kJ".L-K)\Ll \/)lI:" L4(\A'..vl \,1'Y\.' 9i'\.~'._.Y'\_v_I '~.'\ PL»-_' '|\.\l'\.«-L1-.I'.-- )4l \.'L)I'~.\ 1II(\« te:*ri'tm'ies.

4,5 DC: has i::i'~:.ii.ig'ri?:. -cm': 3.iI;%'io'-qgii i'?ii'~'<T;<'I. has 3':;;~'.'§'ed iii: memi:3ei'sE'1i;3 is Therefore, the membership of the Association is ccvmpuisory to cariw on the ﬁim bu5ii"ieS.S in the State _of i;<aijnatai_{\a which is _evicient frcim Aietter dated 3_ii.a.i:oici '\f\fi">i'CAiZEi'i(i3',,"iV'~li1:':--'.-:.':C to M Paa"ie'n%;ieipii-iiseis, iii iiiiiiiiciiiiii ' s'§£';;é.%';:iii}3:i'ii'§v mentitmed that a nommember cannot reiease fiims in Kamataka. According ta DE, the Asscmiation coiiectixreiy decides not te have any deaiing with a persen who does not agree with the directions of the /iigsociatiori, which is in violation of provisions of Section 3(3}(b) at the Act. 4.6 B6 has aiso examined the Articies crf Assciciatiori of KFCC and iound that the same centained certain iziauses which are restrictive in nature. The specific CiEii.lSu'3S found to be restrictive by {JG reiate to susgziension of membership (ciause No.10) vide vvhicit a member may be stispended from the membership by the Executive Committee if deais with a mn~member_ or 'with memi:>ers; urider suspension and faiis ta compiy with the resoiution and/er directions of the committee in respect of business conduct, dispute, awards. Further, ciause relating ta remevai 8: exptzision frwm .1embes':;i"ii§3 '» a I....,,.. 19;' ....J .2. .A . -:.'; 2. ,... n» ,4E»i. ,.--\ --\ ":~.,' ._, ..i :-

3'Lic£L::s\'3 No. 4;) am am e i i..tmg its ;.,c.:w-;-.:s 3: 'me <:.»_m=rmt-.ee to .--,p;.M.»iiit, I I (,1 :~us;:n2ria' »:-mo'. dismiss eii tei'ripcii'as'y or pe:';'i'ian~ei'it sa;ia:'iec?5 ei"ri;3i:s'_qees of igtie 3"

E5.

:5 G. H) q\ '.i'id deC.i*ie ti'ieir service cizantiitit:-ms, to wam, 2"e;;>i"imas'1d, fine stzsgnezmj, expei cur :>thei'wise penalize aw itt;i'nt;ei' giving him at ieas-' days ncitice to give him an c;;:z;3c>i'turti't§,i ta de'fenci i7ii'E'i5""'i' as per the \_ .

ruies ii'ai"n«ad iciauge no. 1&3} have aisci iyeen 'fourid to be i"£ES'Ei'iCT.i'\.'€ in ¥'i§{i'£Ui'€i J1';

-.14 formuiated by the Executive Committee from time to time so as to render himseif liabie to diSCi_piifiaif"ja§1IiQii i_n:iu_din_g 5uspen:sic2n_ also is res_trictive. in niaitnre. in case of any vioiation that weiwa:-its exptiision, the Executive Committee has been given powers to take suitabie action. 4 11.8 ,i\c<::orciing to D6, perusal of the aforesaid clauses of the Articies of Assnciation/Constittition of KFCC cieariy shows that it contains cértain conditions which are restrimive in nature. The D6 has noteﬁ that these clauses can resuit in fareciosure of cornpetition by hincieairing entry intn the n'wari<et. i:tii'i.'i'I€3.i", the clauses aiso had impact an' driving e>:isting campetitors out of the market. The Association may coiiectiveiy decicie net to have any deaiing with a perstin who does not agree with the directicsns of the Assmziatiovn.

4.9 D6 in ceurse of investigation aiso exarnined the communications, ietters, e~maii, etc. of KFCC ta determine their anti--«:ompetitive Conduct in this case. D-G has noted that KFCC thiniigh. its xraz'iQ=.:s ietters an-3! Communications hag issuee ciirections, which anti»cc;s'i°i;3etitive' in t«.=_>.i'ms of restricting thr- . K. exhibition <:>vi' ncm«n3gic3n-ai tiims, not permitting the i'iC>1"z--i'WE'.i'i"i§3'ei"S to '1 ~':ims, 'wi':i":hei:iia*.g th«.:=. pa'~;m€~:n't <31' c§is.'tri"~ut:3i'<" :? <anna.r:ia fiim to the Em"ormant tow' non---«:«:>mtsiiance of the dire<:.t'=on oi' i<FCCI. 4.3.0 DE: has nc:»t.r-.>.Cii that i<FCC has issté-en' tiii'eCtiw--: to its £'i".(€iTii3€i'S stating that a nc.sn-vi*L;sn:'zat'ia iiint ::;m be r=reieaset::§ t;:n.i$,»' in 21 »:in»:~:mas as 0p;;i«3szed to iiianria-aria iiim wiﬂici": can i".5_-¥iE:c"iS€?Ci in 2% cinemas in i<ar':'aaat;--3i:a. :3ai'i:ei":"

i'7:E3i'ii'i«?1C3?i fiinn can ire reieaseci in aii cine:'n.-as in iéamataka pr:.:+'i§

-~:.ti.::' its i*=:-:-1!-ease in iiim tei'riteries. it ' 'the owners of the muitipiex cinema hails directing them intereiia 1:; go}jjpu§SQi'iiy give first preference to exhibit the i<annada fiims. The Kannada :';:u§ti;3ie>< cinema Itoithe cL:mcemed proc§:.icer and distributm'. The members of the associatiori are noi: 'ﬂee ta reiease their iiims. as per their cimirse and business commitment which is evident fmm the rep-i\_x given by KFCC w%"n2z'ein it has stated that 95 percem of the films in i<ar.nai'taI<a are released in a~::co:'ciance with the norms of KFCC.

4.11 According to [36, 'the concerted action jointiy "taken by the distributors of the Kannada ﬂims under the aegis of KFCC 'regarding the manner in which Kannada and 1on~%<annada iiims are to be releaseci in the territcnjy cu' Karnataka is arm-competitive which unfairiy favmirs the Kannada fitm siistriibutors anci disc.riminate against nc>n~%<.annada fiim distribu'ma"s. 4.12 .i\Cc«:»rc';ing to 13-6, the said acticn imposec undue res"tri«:i;ions cm 'Lhe e><h.ii:>i'tion -:3'? non«E'~f,eima~da fiims in this '::eri'i:0ry oi' i<ama'tai<,a. The praci:i:;e3 '--:::5e~:_>pi=a.c:'_. iuies arid i'egLi%ai;i:m5 mamed by KFCC and c<3:':cii':iee'1s iaid d=:3wn asseciation are an"i:i~coa'n.;3e'iiii\,re in \ric3ia'cion of 23$-:'v'isi€:»ns Q3" Seciicm 'v-ii-3'=!i3'v oi' the (Zr:i':'ir.2e'ti'ci-:43 2302 5:01»: it ?.s'3s":':»3*:'-cw':

. . H I .

to :'e:s'i;:'ii':ii:ing the s.i_i'ppiy in 'the .ma:"i<et 'tii:'oL1gi"; c0§iieici;ix,2'e in't>:»:n'r of ai! rmsmiaers oi' the a-5sr_>cia'i:ic>n £2DF'i'iii'ig together on one piati<:>a"n1.

-*1' 'J'~' '33 ms; 'fc?.»L2:'ii"§ ii C-CZ i5'idU¥_£';i:"};'3, in cir~:=.aiars ie"::':e§:r;

~.

i'.'e:i"%::."i«:=«.'.is'ig the €~;>~;hiit.-'ii:i«.Tm i'i0:'i--if.:-mnada 'Rims &33":Ci. "-';5:i<in agairzsi: the inim'man"1:s:,. even after issue Qf -order under" See"

..-- L' . . tr' =1." - |'J': A. ..-x, * _r-.,1. '.,..rv3 \,'\..'§\1f.Ii {S Ci';'c1i§'y'::'1 Q::.1.iu*c:i'ciT,E'. 3:iL:-;rdii?}3?3t:'i.l\:t:-_.;3zis_1L!<.L L2 \*iL§i .. \ BU ................................................................................................................... of Section 3(3){b) cf the Act. Thus the conciuct of i<F-CC was not may anti- corifipeiitive but revpfatitive in total _di_sr_egard to ting-2» oir;d_g-r' of the Qgimmissiqn iiinéiéEiseéiiiﬁ}§"§iéi'E;%"ii;}§Aéi. ".z2{.§%E&;';v£iiii;giiiioBé[iby€55 ﬁigsiiiagiiiaiiva;i"eVi§i%;iiLiiéiﬁgéwr i'*C.'.Sti'iCtiOfY:1 on the iiim distribi.n'.m's and exhibitors cm screening of neari- Kannada fiims, KFCC impedes corripetition as aim vioiates the iegitimate rights to CZ~3i'!'\,f. cut free trade and profession.

4.1-iii Whiie ccmciuding 50, US has also found ichat the acts and conduct 01° KFCC are causing/have caLise<:i AAEC in terms of the "factors under section 1943) of the Act. [)6 has noted that the imteiii: of members of association is to coiiectiveiy i<<-zep watch, iiiform each other of the deveiopments of the market Conditicms and taiié decisions accordingly. i3ui'ti'ier, the conduct of KFCC cieariy shows that it has been exercising its authority to reguiate eni:i'ie-5 and exits and aiso has the power to impose heavy penaities for re-adrnissicsri C'! the m»en*ibei's, Tiws, reaiizing mat the association has the aiuthoriw to pienaiize, any member just Cii3'9.;'E« iiie dii"ec-'cm5 and C1i'dE"§"S cs"? the Association \N§5ti":QLi'E E){§'3i'€SBii'i{.§ any '''-.-~ -~-\-' - . r"\4:" -:-.....'.-. ~.-- -I -»' W .--.J.- + . ' . '..'.'.',.., ;, 4.15 the diiu-£_.C.?:'i"i:Dr:iIi§i\g-'f1'. was piciizticea <;iDC7iJi:::i} by me i'\.5CC i.'\.:'i1iCii ate sans:

an L' .,',.n§--w: .a .i I-s-,«~\ arm". A: f*<') +c.,~.m ':-:'*n\.-"..\ .3. 4" -. ..+ kw." :..nr.._ :__,.:

LKJ L25. \,.~.J c.~i;:\v Cti L 18 ;.;iu\ri;>mi:5 ui .':'I..CU\...7H ..;-\'._>,1\L,i Oi Lht: mm. mm': i..u;~.t::: mm-siu by DG as Ui'id€fi';

i} §:'i'(3i'iii3iT.ii1g its memi3e:'5 deai wi'ti'i E'if)i'i-~i'fiF3i'ﬂi3Ei'S ii} i3C:i'Cii'ig tile Ui"O'JiE»i~Oi"i ii':-.?=ri(:i3"i.<32'y i"«3gistr'z,=.a*.icxn 2' i"§i'.r_.i 5'3!

iii) Eni'm'c.ii'ig the i"ESTi'iC'{iGRS on the number of r_.i . --

i~ia="*rada 'iim iv} Enfc>r:::img reatriction on number of rnuitipiexes for :3 non--Kannada fﬂm "\x')"'Eh'f{5'rC'is"{g 'i'E%:~*:§'Ec1fi{3n of 'S rﬁ:é1'K'i'i'wm1 s.ﬁ'ox7x}*s[€§Téii§"r:f"a%iWrit5Fs§*i{éhtﬁéda fiims

vi) Not aiiowmg dubbing Kannada ianguage :3'? other iemguvage movies. vii} Imposing ban/'b0\,rce:>tt against the producers, distributors and exhibitcrs

viii) issuing letters ta the theatres to withhoﬁd the share amounts of the produce:'s/distributors, EEMPA (Eastern indie Mmtbn Pictures Assaciatian), E<a3§ka*ta 4.16 As regards BMPA, [)6 has found that its mies and byc-ﬂaws also make it mandatory to get fEEms regmered with the associatien and a fiim is not registered wéth it, the share of distributors is net reieased. in this regard, DC» has reiied upon a ietter dated 02.06.2010 51' the Asaociaticm in which directé:'3.%ns vwgwe given not to weiease ithe share of ci§si:rEbutors case of the ﬁlm:

'P§'im:z-2 Pevséa', ';:'n'w:.r2 the-2 'fiim was rm': regiatered with the a350cia'tios':. DE has. carwciuded mat ;:.rm\r':s§on:. in the byeiaws of Eilv":P.f3x and its conduct, :'est:'i-Cﬁiwg its memiaers deal vvith :":0n~m{-3:*nbe$'S, mak'--""? -':.~f.?m;3'-..-'33=;'.»§"\,=' tbs.- ..

"it:

(NY-

Bihar and iharkhand ﬁfiotﬁon Picture Association (B$¥\fiPA'} 4.37 As r~egaa*ods,~.Bi.h--ar< and markoh.an.d«.iv1oiti:onHutu:=_a.As_socEoa3;_iot1.,{E3J,ME£%:),o..1Z2(éio. 7' 7T T has noteci that its Artides of Asaociatic-::':

stipuiates that a member can be suspended if he/she cieais with non~:'nembers or with members under suspension. it has been conduded by DB that this ciause imposes. Lmjustiﬁed restrictions on the members to carry on free trade and business wiﬁch is an*;§~Coom,oetiti\«e in »::ontrz-wention to the proxrisions. of section 3(3){b) of the Act.

4.18 DIS has also reported that EJMPA has framed various rules for registration of ﬁﬁms. These ruies put certain__ restrictions on the producers and dist.ributm's of the fiims. Any producer or distributor desgring to do business in the territory of the Association has to get his film registered an-cl also abide by the ruleé and regulations framed for this purpose. 1*: is ;:n'ac'i:Ecaiiv impossible to r'e§r2ase a fiim withczut foﬁowing 'the wagis'tra't':on douse of 'ﬂnese Associations. Rune 4 of 'these rules !"PEz'kiES. Resgéstration c:omg:n..1.!se:>r\,n Ruie 5 pots reastﬁction that no o'5.s'tr'ibou.tor or e><'ni':Ji'io:" W 'rr§3e:' Shaﬁé en:-es.' Er:-*.o an ag:"ee:'mant for c:'«is":ri.%:soi;ion,:'e><h§b1t%on of as p's«:tL:.re uniesos tho joi<:i:ore; wiih 'ms?

aff%da\fﬁ: from the ;:'»roo'uce;+r at the tame oz"1*'»;:g:;i~"-1:2'.»3':i<:>n, (ar*;iCEe18) contains a c.'=ause which 4,20 Accmdirig to DG, deszpite the membersizip being voluntary on paper', it is ir3_1"ipg$Si§j_ie for _ai_1y dis§ti'ib_gtQr and e><:hibitei' to do the business. The iirivestigraticxn shows 'r. at to carry out the biusiness o'a"i:"iim inﬁtvhe territory of BJMPA it becomes esssentiai far disi.'ribu*«;«:2r to 'take the membership c:i:i'ie:'wise he -may no'; be abie to do the business smoothiv.

4.21 DE has aiso reporteciuiihat BJMPA is féircing to accept the terms and conditiens reiating to the sateiiite/television,video reiease 4:21' a fiim to register a iiim in its territc-ry. The OP itseif has accepiied that such conditions are imposed upon the Producers.

ii-.22 [JG has aiso stated that the information gathered during the course of investigatirm in various cases against BJMPA, prove the': it is violating the provisicms of Section 3(1), 3(3}{b) and 3(4) of the Competition Act on account of its itzyeiawsfruies and reguia*:ioi'i and activities. DES has founci foiiowing as am:i--».:ompetitive in case of BJi\.f:PA;

i) Pave 195.23} C~fVi:he .lxi"%;i€:ie5 <3? .¢iss-aciazi-tin of E3li'y'iPA whicii says im memiaer sheii iwexre i3usin.e,ss deaiings am' c.-.e«n't:'ac*zs i'eiai'sng ":0 disti'§i3'uti::>n ari<:>'.,v'<:>i' e>---(hit-i':ioi:"; of fiims in any ienguege with any i::e:'s0n wiii".in the te.*'i'i'tQi'i-5 ':5: Wnich 'this i'=.s5~;:>:iaiim'x .-

;__3,E'iiE'SS :"_»i_I{fh peg-5'5-.:in is; ié'ie;Tii_:;e,r* .1-wit? is !'»(_,}"i' f_~'.e_.ss3;i':s-.':ii'idt~"*"' §3LirS.L."c;%n*£ 3;') V'.

~., articies. and a member of any Associaicion aiiiiieteci to Him Federatior :31' irdia :'e<;>:3g3.i2ei;i '::»y the A:~:.s0:iei;iori. 4 . \

ii) Fu.rt§':er, as ruies Siai of Ar'ci::ie5 eﬁssezztiatisri, .,:'i-' " " 4 of the party con'cr'a.r:ting or/a nd supplying the picture far the purpose of e><*1¥¥?i?§.©1? or ri?S':1'3 ib;+r.f{?£>r=-

iii)'; impesing ban by éssuihg caution circuiars, d':rea:tirzg their nweahzﬁs,-erg not ta deai directly or indirectiy with the certain ;3es's0ns,

iv) imposing conditiorws and terms on screenmg cm' a film on sateiiite/DTH not before 'five years from the date afpx'en1ie}re%ease in the caumtry,

v) imposing conditimns on sailing video/CD rights not before six months {mm the theatricai release of the Wm in the counmr

iv) imposing monetary penalties on the producers

vi) Deming business opportunﬁcy by refu's.ir*ag in register fitms of certain producers and distributors and

vii) t~"»';es'mr:ting the zaptéoins of the members reiatmg tax the arbmation of :

d§S§3Lj'{E e%;«.:.

41,':

M<3t§::=h ?§r:'s':Lsr'es Assucfaticm {MFA}, §';Ive£§-'ti A5 u«_ga:'*'s ='x/'§:2.t:s:'1 F'.r;m:'es /~'.ESC'»C¥«3'£"OEa i;§'~,/§%A.} 9'3 has fhund ﬁhai 1h+3i': ems r:-crtam §Al\.AiL.: =2». ,3§_-j;.;§a: ms and ah{:ti\.:'i':ie:--_-5. af Y\e'1"«"X which f:-antamouht ta ithe ir'rfri:1ge:'he:1i: Cr? the ggsrc;-'v'Esr::>n of oi" the £Ic:»a'h:7;3e':mc3z'; ;i'sc'£. -DE noted 'E-::>How'mg he-:2 as1ti--cc;'mp«3i:itExre in cases: {\»"sP,&., {Y-E-ihi;

-3} Para 1?;{_-..-ii) ems! {>:} of xi-.i'=*,i::Ee:'~. A:~.:su=:iai§o p-a'<:»h%§':>'sI1 s'iE;3EE:'1g with nI3h~mem':3:a:"s. ff

ii) Rule 16{i) of Articles of Association which stipuiate 'ch:-:it "no meem.be_i* Qf the As.5aci.ai:iQn ishali d.iS'E}'.i§3.L!'iJ.E?j'SLi{_31'Ji§,/,ai'id/',QY,ECi'€Ei'i any ;:>icturee unless it is r-:-agistered with the Association.

iii) Ruie 42 which stipuiaites impositicin of penaity and taking disczipiinary actions for not efoiiowing the ruies of 'M PA.

iv) iss_uing interim circulars in which the members are cautioned to refrain from deaiing with the certain ;")i"OdUCE'.i'S. V) Activities iike i.mp0sitien of conditions and terms on screening of a fiim on sateiiite/DTH not before six months; from the date of premier reiease in 'the cauntry,

vi) seiiing video[CD rights not before twin weekas from the t'neatricai reiease of the iiim in the cmmtr\,r

vii) imposing a 'time iimit of 10 years for agreemem: bemreen produces"

ami L7'.is:'¥:;"ii*;sLit{2s'

viii) i'esei'\fmg the i'i;=;'ints far ari3i'Ei'a?;ir3r"s §3i'O~'fj.i_!CEr 3§')Ci' dis'Li'ibuicsi'

ix) g;)i*e5s:_n"izing the producei's/ciisiribuiicirs Cr.' fiim for ;3.«3\,/meni; to The menftri-2:3' distributei' by i'eiLisimg to registerti'1efiim. Circtuii Cine {£".C€.'.i..»''--''-..

;

/l,2<1 regards iiienirai Cjii'<:i,:it Cine ;'1\s::c;>cia"iic-fi {CCCﬁ'~.} aise, certaii :"e'£:uiaticins and a:ti'ui*;'ie5 have i;.»ee:"i i'»::-am-5,4.» '=.7\r DEE in be anti/C 'I'. \"

«' 15:' .- ' accordaixce wi':i". 'the §3i'O\/iE1i<;'.ii":_C?7:F' sec'-ﬁ.o:'i E: oi' the C:w:":'ig'3e':itiom Iv;

I.-0"' & i'eguia*:ions and activities which are ariti--compei;it:ive have been pointed out by the D6 are as iuimziierz ii Para 4(3) and 15(6) of the fwticiz-2_$pfAsisiociatiQmiA__«;7f"_§C.§As}»$:hi§_%7 TTTTTTTTTTTTTT prohibits deaiing with non--mei'nbers.

ii)Ruie 4 which provides that aii Motien Pictures in Hindi, English, Bi10jDLIi'i, Rajasthani, PLm_iabi, Ham/am'i, Sindhi, f:3Li§a,i'6."€i,7Ciii"1Ei'£'ti_Sg;ii'ifii, i\/iaivi and Urdu ianguages and dubbed version in such other i'aiwgiLieigria.s_ H as may be decided by the Committee from time toitiiine shah be' ccmpulsoriiy Aregisterabie uniess exerriptiim is gramzedinby itiie Ccimmittee in that behiaif. A , V

iii) Rule 5(a) Qf the Ruies for Registration of a Picture _whiéh:'stiA;i'ui'ié_ts3.:i_' I that :19 distriiwtor, sub zziistributor Q!" e><h.ibitor membier shaisi éniei iiito..._ an agreement for exhibition 0:' c§ists'ii3ution C11",/E'z'f"}d e\'hibii: a ipictiure, T with any party uniess the picture is registered with the Association in 1'2:-svour of the party c0nt:'aci;'ing er suppiying the -,:ir;'-cure, fer the p=..=rg:>=:»ss:e of e>~:hii;siti0P or distriisution. Thus ";i'i:~2 ﬂssscmiaticbn restricts its members to deai with ﬁims which not reigistared with i':.

iv} Ruie 8 isagarciiing i'egist:'a"-tion of a picture which iays davxm. 'D i'es':rir:i:io»ns -i": deaiirg, with a Cef'iEtif't ciass of gamciucers. V) Ruie which Says down tiie cc:md.iti<m.s w'ner'e a gaictme becmries ni<;>n--eiigibie far i'e'gistra*ci«3n.

vi) issuing cauticm ieiter' against ;::ic';ui'e ' ~ is ':n'rema*;:c;>nai Media cm "ibgar-"'=.§';~:hzi":.itc:rs were directed ':0 net enter in to contract or reiease untii and uriiess the ° pii.:'ehr.eii.s reeiisit€:.ted xaviih *£I:.C€.lA- weife issued not iiiim ;A"iijBE5f}a Anjaani' faiiing which a pesnaiw of i-'<s.1,{3D,OOD/-- she?! be imposed on the Liefauitirig member. -A ''' " '

vii) issue of cenficieiitiai letters to the ii"i€'.h'iE3€~r_S regarding deaiing with the preducer of 'Actien Repiayy'. Further, the pi'0dLicei'5/distributors of the 'film 3'-\ction: Repiay' were pmessurized for paignient to the member ciistribu'cor by refusing to registeriithe fiim. 4.25 According to the D6, the assciciatiovn has aisci imposed iterms and conditions an screening of a film on s:-ateiiite»/DTH not befo D re one yea: fmm the date of premier release in the country and an seiii'ngXfid'ee/VCD i'igi"i':s iiot before six months i'i'::.m'i the tizeatricai release of the fiirﬁ iri 'the c_ciu.r§trs,:. The association issi_ies caution ietters against producers fer the cieiiinieri account of premiature iteiecast fiims on sateiiite teievisien. The pi'OCiUCE"S are directed to settie the ciaim otiierwiseino ierthcijinirig pir:'i;Lii'e eiiaii be \..igib.e for i'EgiS?i'3tiC?!3r /'r*\\3:§:':3§":.§i=m;{i: to CH3, ithese eomiitiens are both anti~ itempetiﬁve are i'es*:i'ia:\:ive.

ixiorthem indie ivicsﬁicsn Ficturies ﬁisseciatien {i\§i§ViP.&}_, iaieneiier /1'3 *+..=:.6 As i'Eg&i'<i.E«. !°\iCii"Ci1€i'i"i iiidia i'~.»'ioti~.:m Pictures Assaciation {i\Eii'»'iPA}, .ieieriL'har, {)6 has mired ':he;'i. i:ii~evisicm.s rnei'im:«a'ied. in Ruie of Reguia'ciDris i¥'i'i}')O'§5. i"€Si£'iC'Ei'.f.*i"i on its mE'I"2'i~§3€i'E3 ere «rieeiing wi"-3"; ncm--memi;iei's. sateﬁite,/television before expiry of one year. Simiiariy, it imposes restric'tions on 5.E.i¥H'.3é' Viciie-'3./CD rights b,.e.i'Q.re t.wo.we.e§::s fmm fem: iiieatricai release of the L"! =i:.:T in the ceun'-try.

427 DC} has aiso stated i:.ha't it further imposes F€$'i'r'iCi'i£)I"sS on seiiing andfor disposing of TV rights of 'me mm for reiease in india and not befare six months 'from the z:>remie"r 'theatrical reiease of the Film in India. The asso<:ia'£ion's actixrities aiso are restrictive and :-mti--competiti\»'e in nature which is evident fmm the action of refusing the registraimn of Fiim 'Action Repiaw' and pressurizing the pi"oducer/distributar to settle the outstanding claims. imﬁian Mation Pictures Distri§:>u'E:€;3:'5 Asscsciatiani ( WEPQA) 4.28 D6 has in course of §nvesi.'iga'=:ion aiss 'found certain acts and conduct of iiViPDzi\ ta be an'ci--c0mpe'ti'é:ive. D6 has ccmciuded the anthcompetitive prcwisions and candizct cm' the association as under';

i) As per ruii'2s s'e,gLsia"i:im'is for ac:quisiii<':»n <3'? dist:'ibu'T.icm, e>:EiiE. ition arr' e:<pEoii;ai;ic>n s":gi'iis, i"Cs€:'i"ﬂiZ&-I-ii'.-fw er: 2'-wuired to tins i'iim with ii The its m€:mE3ei"s. to oiviezin "fr-oi'n iiie .1) §;')i"C:dUCE'!'S "ix: i*ei"rain ﬂcim iiims *i;'nrougi'i sateiiite, i:erres'm'a.i . . I or 't:eie3:\ri:1i:;m/<:ai::ie «=2>ia')%c3ita':iQr"i eiti-1e;' -'Ciii"€:C'Ei'f Oi' imj'ii'ec'1;iv for a eriod . . X , A and ccmditioras formuiated by the asseciatien are accepted in fail. The activities such as i5_§Ui..?18 Cii'CUiEiT'S; cautien.ietter5 among the E"r'1EI'ITiiZ3§.r'§m_£3>i:3WCi cempeiiihg the producers. to accept their directions, cause harm to free maricet since at imarw instances the associations had decided not ta deai with any member or r":on--memher, it directians at e><ei::u°tive committee of the association are not fcsiiewed.

4.30 D6 has concluded foiiewing ta be viola-tive of the provisions of Ccsmpetition Act in case of ali these asseciatiohst i. Cgntroiiing the fiim distribution business by putting restrictive ciauses in the Articles of Association that the members can oniy deai with the members of the association. Deaiing with non--members is prohibited by these associations. These provisicms create a situation wherein aii the persens engaged in the business of fiim distributieri and exhibition have tc: 'become the member of these associations to crsnciuct the business sm.o-cithiy and aim to have access to eii the fiims reieeeed. in their territories. .'A.ccor«;iing ta DES, this te i"

the proviisicms of sectit-in BM} at the Act.

" ' . '-".. ". .'..'l. .' .. T.., ' 't... ' , ...-' ,. . ... 71.. --, :4. Coi':'t:'csiimg the ham CisSLiiiJLJ.UOii E.}=.JSiW:'::: i:-y mriay ut L.'CJ?':'i5.Ji_!§SL3i\;' r-r)ry';«;~<)-r-\~';~§ng-1 [;)f'}'T,:il""uE in-'N r~;\r73r+.r-us' +5v~.m '{:'|;I'\') 5'---\y~.r>.v\r\»*r'~ +"'_*'\r\ .-mi,\,_»..--.-. V.--5 -13:3.-x-~ .L;:_:,..¢....:1uu... .-.*c,:-.,::u'.'u ;\.J' u;;:,a.;m\'.w KJWC r::::« ::r.::ii;x::;.:r mic I':It:."I)'x.f x." HS!!! iii. i3c:i'c.ihg the terms anti ccsnciitiorr:-. 19:23' i:>usi:'iess which otherwise shouicsf he tieciijed between iv, By issuing circuia2',/informaticm among the n"iembsar's, these E.iS5UCia~tiOi1S iaoycott a prieciucer and 'thereby pressurize him to accept the directigns and «orders of these EiSSOC:i&i§iOhS.

Join"-i' agreement with other associations to contrei the iiim distribution business in india. Their conduct indirsaies ccmcerteci action to restrici; and irripede the cfompetition by controiiing the markeeis. vi. Restrictions imposed by KFCC an number of screen in wiiici': mim- regicmai Fiims can be screened.

4.31 136 has aiso conciucied based on the findings of investigaizion that no evidence/information has been found regarding 8ﬂiLi"CUi'Tif3*i'3iIi.tiVE activities by Teiangana Fiim Chamber of Cgmmerce, Chennai i<anchipuramTi'iiruvaiiur Districta Film i:»istz'ibi_n:ors Association and Orissa Film Distributors Syridicate. .3. Reiaiies fmm .'i$iS§3C§,'3'§iC}nf3 befere the €:«:>mmi3:;icm ta u-vV\ Having c:msidei"ed the re;3~';iri:s Di inxrestigaition of D6, the Commissi-am 'ca iiwiiz this mmrriei*itsfQbjec:icm5 'im;'ri "the asscicaatioris. Repiies {D aubmiitted by them on i:E-'ea reps;-r'=:s of D6 in varimzs Cases aie summarized a 5 ' I Lmoer;

iiegsiwes frcari i<i'--"C£Z §__:j;_C_as¢«s ZS, Acfi»__.'i, 6:5, sits'? am} $18 i::=ef<:::-'«:--;> iﬁsaixiiiiissian B 1 K: ('C has hie. CC?Fi"ii"i'iO;"i use i<?S in cases Mi-€332 L has iaeen namen' a< i'es=,'30:'iciei'it. in its wi"i'ri:-3:": mpiies ri S*"'.G"~ 28.Cil.2{3.'i._;i 01.07.2011 and 03.08.2011 i;i':1i'Ui'iE the Commimion and in an xzarious dates, i<.F<;C submit-Ed tiiai ii is a Sc-z:iei:'y' Kamataka Societies Registration Act and it has aitogethiar 4969 totai members of KFCC comprising of Producers', Disti'ibutairs, Pgarmaiient Exhibitor Members iani3"'sie"£§ai9i5éi¥§i$aéieéiiié$;i{aii:ii%}:g}"is.,;i;éi;~;si5ei-éf nL{.is:£~,:ii;%i;£s E; i;--}{iiiii;«{{;s}é;§;i;.;;§é1é<g, J theatre awners. and cii5tributoi's it acts as 3 i'e-:gi,2iai:or~,I body so far a3 p_i'OdLiCti.OI"i, di:-atribution and exhibition of fiims by its memi3--iar:s in i<arnatai<a are izoncemed. It has been aubmittreci that Lmiike other States in South inciia, in the State Uf iéamataka, fiims cu' six ianguages nameixg Ka maﬁa, Hindi, English. Telugu, Tamil and ix/iaiayai-am are exhibited. As such the fiims pfoduceij in '-iannada ianguage earn their business onixg within the state and marginaiiy in neighbouririg states, Hindi fiims accounts fer around 5 40% in i<amatai<a.

5.2 it is with these aspects mind that the Fiim Chamber of Ccmmerce reguiatces the producti-rm, ciistriiaution and exhibition 2:2"? ﬁims in Kariiataka amcmgst its niemiaers. As per iviemorandurn and Articies of Associaizion, its main obje«:~':i\res are is ericciurage and pronwaie the Fiim iridustw in iiie State of i<ai'na'tai<a and to wczrk in conjunction wii:h simiiar Association in inciia and to §,;ii'o'T.€-.~i:i: arici =,:>i'cm".:-:3':-i": 'the; i'igi"ii:s emci pi*i\ziie,i3»:>. its i'"':"iE3mi3€i'S. 5.3 ii" has wise i.w.ei*: siiiamitied 'the ass.ocia°é;ii_m is aifiiiateci to "he Souih indiem Him Ci';am.i2:»:i' :3'? =;¢:-:"rm':iai'ce arm' Fiim F€e:3'e:"ai;i<;~i'i 93" ir~,-'i'== which is the be-ciy '.f\-"i"iiCi'i i"E)gLi§a'3ZES prociiicizion and e>:i'zii3i:*_i=;m «:.~i' iiims. its opinion is sought 133:" the State and 'ifie C€3!Tti'ai Government in igiie ma:i:iei':«3 of awards and D'ti'i€:i' iri:.ic_i=3ni:.ai i*z*i:r:t1:-i:-W3 'C'..Di":CC'3i'i'iE3d with ighe iiim ism'-iisti'y. Ths-3 re:-ctzrriiwz-:~.:'i<js. 'iiie s.:i.iitable camjiciates 'ins' :r3;3i3<3ii'iiz'i'ie-mg at ilommiittms and aii the films. pr0duc.ed in iiaimada iE1ﬂgi,i?:\J ' i;i'is'c:-ugh assc.««:iai_ioi'i to the CEi'1SiZ>i'EOBi'§. obiio-sad to became its merribers and such inioirnanib 5.4 According to KFCC, some bf the informants in the cases fiieij imgfore the Commission are its members. However, ncme _Of7SLiCAiV'i iriformamcs was ever aiso waving no ohiigatibn wi'iat5c:>ever ta CQ:'";'fii'ii,iE' as its membsers. Hovirewgi-, as {mg 35 any infr::rman't rerhains a member; the ini'r;>rmarri is ccmtra-ctuaiiy and moraihr bound to abide by aii its decisions, ruies and i'F3gLiiETCiOTiS and directives. No informant whiie continuirig as a member of the Society can complain bf contrzwerition of any oftrze provisions of the Act. 5.5 it ha5 further been subniitted that the Competitirm Act is in addition to and no': in derogation of any other iaw for the time being in force. The rights to form associaticms being a canstitutiicinai and iegai right cannot be subservient to the provisions of the Competition Act. The right to reguiaize the affairs and the inter- 5:2 deaiings of the members of such asgociaticm is aiso vaiid, iegai, c:ori'ti*ac'ts..sai and i'imciam<=m=:ai right. corrtinue as i'i'i-?i'i"!bE'iS oi' the a.~:sociai;ir;n, if arm; of the irifarmahts db not wary"

to s=.ih"'ei* its i'i-39'Lii""Zii".i:"' L. 1 5i.iCi'i ii1i'oi'rrami: is aiwsiixs at iiineiiy 'to give up such " ' . .--.. r~;~4- ,- .., ." * \_V"'v-\ i_. . ,....~ ..:. 'i ii ii:-,jJ».'§L: of the :34: \:'~..-':-;::: -.313 :3-Cuc.'i-.-L'E.'C§_. it tam'arriouri'i: to saving 'tiiat '?:here can be i'ii:'V{~Ei' 5-any Trade isciciety.

--...

aaii 4'-/i '1-';'i'€ ainorit 200 in Baiigai<.>i'e {Iiby erziwibitiiig iiiiris in abet 3: ..=.i>:

iarig=..iag»:~;is ire. i'(£*3i"ii7Ei(',iS':',. i~iiri{ii_, Ersgiish, TEJii..i{=ji...i, Tsmii arid i'x/ia~iia3.-*aias"i.

One Ci?

i;i'ie iri:i"bi'i'hah1"r~. 5iS"£?3i' cor cern, haci fer oi the iiims "i<§i:"

it for pe:'i'.*iis$.i-st': e>=:hii:-it its him. iii-i§TiE'd as ianguage arid Ravanan in Tamii ianguage. Keeping in view the nrzmber of films ready for exhibii_:iorj_ in different iangﬁuages_, the association had decided to perm": ~;-?'l~:'§":ii'.ii*:".ii'.?I'i of non-Kannada ﬁirris in 24 °::heatre~.s. 5.8 The association has denied that ii' is corripuisorv for any fiim exhibimr in Karnataka to become its member as aiieged. 'Every.e>:hii';imr car' fiim is-free to do whatsoever business he er she may chose to C10 in Karnataira without becoming a member er the Association. .»"~\ﬂ\,' finding of the DG contrary to the above pa.-sitiori is cscmvary to the actuai facts. 5.9 in its r'epi'yr, KFCC has stated that the Fiim industry in Karnataira is divided into three broad territories, riameiy (i) lMysore~Karnatai<a (ii) Bomrbaw Karnata ka and (iii) Hyder'abad--Karnataka. Generaliy the regulation by the association is imrmaiiy iimiteci to re mating the activities of its members in the 'terrirorxg of W,Isr.>re--i<as'riatai~:z-1. in any event, even an exhibitor who wants to do 'eusiness can cic: so in the eritire Stare er" Karnatai<a iriciuding the iterritorgr of i'x.z':y':~:.ore~i<ai'na'tai<a witi~.reu'r be<:omii'ig member. As aiso acimitred by the im"c.»i'rr1ari'ts, it vr;>iurri;ary :'-'x5s«:rciation ariei is rm': eenigsuisory fer ary 'D .1 ~.

3' "V"

...J r"?

C "T r'! 'is-ecorrie its merniaer in order 1:0 do bL;ES'i§'iESS in any part or' the i~'{az'nar.ai»::a. Under i-is i\»'ieiTs§:r'ar1cirm': and r'\r*'c's«:Ees ﬂxsaciciaticirz, m -:'r'rE'*r 'r' .v»\'"'.

1 .. --\.i..-

der:.ided Z:iFi'iOi'i{S§S"i."if!-?iii'1SBi\"€3S that "-.".i're"\,f wiii vi./iii'; ariiy ita other member T./'T A-:cor'dir:g to the association, 'i:i"ier--e can never be any requirement of iazw tiw.eiri_~:ei\:'e5 ti: oriiy wﬁii each -gamer" rr:L::~;*i: riec -zssariiy deai with the ,C'»ersoris, \/\IhOiT1ii"rE'\,!dO not wam:

' \--';

."

. ................. ..ne.ees.s_e:f_ii.v...a:1e by force Ofslsaw Lieei. ';W'.§.if.iTt. him,

-' Sgli it' has aise been denied that any e>§:i*1ii:«§to:' or distributor is deprived of any xfiighfcvto_do_»bus_iness. H0wever,_ ens; such person who is not its member cannot insist that every member' w§'io does not eontractuai between parties and no one p-erson has any right to insis"t enether person must by iaw contract wiﬁi him. it-has beer: eiieged igiiat the in"formen'cs went to enjoy ail the benefits of being its members but do not want to undertake any of the concomitant obiigations of such membership; 5.12 it has further been submitted that there is no ;:srr:»hibitic»n whatsoever for the infermant to do business without beceming its member; it is inmrrect :0 cheese to deal with ishem must Aii such s deaiings .

suggest"that Vm63mi3€§i'Shi{.} m' the KFCC is necessary fqrj er _ vexijinbitor to do business in Karnataka. in his statement-_ Mr: véI.i'»'E.i§iaAjgraj Eh response to a query from D6 had aiso cieariy stated that it was necessary for distribuitcsrs to become members of KFCC. Howexier, some of "the informants having chosen to \rc:siuntariiy become members and having agreed to abide by its terms arse? conditiens, b'ge~iews decisies;-s_, caimot new contend that *';he iswierrnent is free to do xnmaicever he iikes and -gosmnue to remain its member'. if em' %iis~:r':butoz' or exhiizsiizer '\Ni"10' is a member' ef' the association wants to disregard and breach his ccrzmactazei Oi3i'§gB"§'.iCFi'i5 its the esscscietien, :»s_:::'.r-as £§¥.s"L.r'§i'3ui;<;Ii' 0.1" e»:i':%t»i'£m' need net can"

asseciation. Such c;is'tz"i'Dutor and e;«<h§bii:m'-- member <"

a ma*«:tez'" of rignt he is ei'ztii'tied deei \.W.:i:""; i"ii')E"'.~§"i'\E§'i \.

1 \ . .h ,»~ \' J 5.21.3 DE has compieteiy overic:>oi<ed the stated position that a distriinutm wants to bewme :3 mt-2mbei' Qf the association since the membership iadmittadify gives the dis'i;ri?butor the stated benefits cm' dispute :'esoiuti::>n etc. 5.13} fxr:co}'dEng ta KFCC, it is éiiéiéti éhd th.?3V'E".i'C'é--'iLi;iV+L_;:i'i1i3i9i'S under the Memorandum of the Associatim are barred from doing business with others. However, such membership is compieteiy voiLm*tary and 'free and no one is i'CI'CECi to become a member of the association. £36 has erred in seaming to the finding that it has given no cogent reason for net aiiawing the members to deal with nommembers. The {)6 has c»verir3<:3i<ed_the factithat right is contract and the right to form associations are not ta ken away by the Competition Act. if certain persons agree ammgsi: ti:iemseiv.evs...'h£:t 'toL':ide'a.i. X ' with a non--membei', that right to so agree is not at haii a_ffgcteiii_'_by_'thief' pi'¢3ViSiOhS of the Competition Act'. Hence the finding of the Deﬂthatlits byes iaws put res'cri:tions cm free and fair competitioin is er:'cmeous and ccjhtsmgz ts the facts and evidence ieci befare it.

5.1.13 Tiie assQci.s.";ioh ccsnsiciers ,-severai aspects whiie céecicéing the smmiaer of iiweatres in which non Kannada ﬁims can iae mchibiteci by is exhibitma"

.'..

l membérs. inia decision is. taken keepiatg in viéw the the film m.zmi3«2i* of fiims aroduced mid scugiit to exhibited anczi th» e:-<i':ibitioz'i. Thus it has ah «:»=m.=.e=-'::>=.,=s r'espohs:ibiiity' and a duty' towards its memb<*:i's Us §3aia:1~:e the huihber (if ﬁims s«:>ught K3 be :'a>:i"iii3.%i';et:i <:ii'ii'e3reh?t ianguages, iauaiity of e><i1ibitioh. The nurrzber Q1' 'L'i'i*3£i.ti'E_'j§>-

'Y*hhori Kannada fiims can be S{;i'E.'EEi'iEd by its members in 'shes south' by a ho-ﬁx! cciiwsisiing 0'? a gh::n.s;:> of eaiected memb+§e's T not suffer fmm any vice and no maiaficie can be aiieged against it as this condiition is L}i'iifOFiT7i\,' appiied to aii its rnemhers. 5.16 it has aiso been argued that the information before the cammission itseii is not maintainabie in as much as the informant has undertaken to abide by the conditions. in the event, the imbrmant was rim satisfied with {he number of tiieatres permitteci; it couid have sought for an rnadification from the associaitian. There is no vioiation of any law mcwe particuiariy any infringement vi' the right guaranteed under the Constitution of india as the EIC'{§Oi'i of the asscbciation is by a body of eiected members and is in accordance with the guideiines/ reguiations/instructions which are appiied everiiy against aii its members. 2' 5.17 Acczcaiciirig to KFCC, tiiere is no vioiation of the Act in the case since the explanation ta Sec, 4(2) (a) specificaiiiy deais with a situation which is akin to tiie present one and t'i"iere is an expiess exemptiori ta such ccinciitioiis which may be adopteci t=::» meet the c;om;;i-etiiticm. The association has imposed i"e3siii'icticm for ea>:.hii3i'i"irm oi noii«i<:»..i"mai:ia Fiims i.3e\_./oi'i-"i "Mi ':hea':re' ' i-asses. it is its emzieavor to inczease €ZOi"i'i'p€ii1§'E§Oi"i -"i :3'"~'*~ CC3i':'i§.')&"£i'Ti\."{':i'iE€S£i of "the iacai Cii'i-Ema! vis~a~x/is i~iatio:'iai and iii'iEi'HEi'{iCiii6i cinemas ans: to aiiow iacai and i<ai'inada iiiriws gzirosgaer and itarripete in time- mai'i<et in of huge {viLiitiriaiacmai CCsi';:*n'3r:«:'zi~:ms virith tiieis" "' 'ion of *-piisa eis3:iCia'=;ioi'i is in iz-mi'; is in mi' r4"

The iiTii,:»Li;§;ri£«is' eiideavou.' to §3i"DiTiO'iE <;<::m;3etii.ion ratiier "than aiiewing one §;3ig3 "

n'ic>nc:-poiiz=3= i3:".'i'i'\,» iiiitC;- the mari<ei;. J?

5.18 iv-ZFCC has further argued that the restrictkm which is impugned before the Commission is only valid for two weelts tr<:>m the -date of release. The ., other twe territo_{'ies, the informant has screened its movies gt;-:»_>=.;eéd re5tz"iction is epplicabte to the theatres in the lVlx,rscsre 'terr'i'tm'y and not to other twe territories in the state namely Borir'ilrJay«Kamatel<a, H~,rderabad~Kaa'natal<a. This is even evident from the 'fact that in the aforesaid 'Reaven' in lT1t'_)t'E than 30 screens in those two areas.

5.19 it has also been brought out that Bangalore as a cosmopoiitan city has unique problem. Bangalore city has a limited number cat theatres yet films in English, Hindi, Kannada, Tamil, lvlal;3\/elem and Telugu are regularly released. in order to accommiodate alt such films in the limited number of tlteatres available and ta ensure that big natienal land mtemational distributers dc: net monopolize the mariket, such restri<.:tic:ms are nemssan,» ttz» provide for heat"

LU')! cow petition' 5.120 The es5=3.r:Eatio:w has alas ::<3r":tem'*?ee that some of the irﬁorments have been iz'*=o':ul;3,ing in :~.everal mal;:.u'a:;";ices are 'm*eg=uEez*ities in We Fiim i:':dutstr'§,r in i.

4 t<aa'natal::.:;. The assoezieticms nametzi in the in_t'erx'r1e'tion had i"E3C€l'~.!>:'§d compteints the %m'ernwaa":t tit-ze Cinema that at *'lC.l mt eive 3%": \\.' c%'iam1;:er Clialli. r:»ut program \.

as'ranget;l in an am)'. 't.een~""" ' demands rrmney in cash 'From the exhiiaitors as advance, coiiects fTiC3i'i€~.'-'y' ;i:-iiréééhi F?35;:P?'°i?aO".?i¢'?????a?9ati?9it3.?5Wa3 arizaiirii E9 ?3i?iY3:a'7E§3a.?'?7d dries not refiirici tii-2 amount which remains in excess with them to the exhibitors. As a C0ri5€:'quenr:z--:«, it avoids giving fiims to 'thO,S€ exhibitors to whom they mive ri'ione.\; and find new exhibitors to exhiiait trieir new fiims. Big Pictwes aiso §3TO\:'Ol'{E exhibitors to remove rimming Kannada ﬁims to accommodate their films; it interacts with nori--members and encourages ncm» members deaiirigs, 5.21 it has further been submittieci that 92.7 Big FM Radio wiiicii runs a ezommerciai radio station has been aiieged of damaging the reputation of ar:'tc»rs, artists, teciiniciané, produatiori Managers and other cormecteci with Kfamnada Fiim industry by broadcasting highiy oinjectionabie materiai on the air. Big FM Radio has admitted having tarri'ishei.i the image cf 'the Kannacia Fiim industry by bi'oadcastirig their apryicsgy on the air, by pLibiiai'iing (1.) unrztmttiiticmai ar>i3iog~,r in News paper'; and aiso suitimitting an apciioggi iett' r "' » '-. .-V' I the ciianiimai.

itaitt»: twig ii:

:\ - .' ,»-is:.ocia'tic2n, Ti"ius_. theiwa '5 1'

-1.} '- "}:g'*5'v ir-"F-.*r\r' .--'~«* aifitl' L;i;:L:i;,»_._Ls_,: an the 'iiims reieased to be regist-:3rer.i with it, However, it is net correct to say that tiye--_i;_31ys(5 of KFCC require registraticwn oi fiims. This was a practice started at i request of the pr<:>dLiceirs/distrititrtirsrsiiieir theirii:ier:ei'it.. A was introduced on the request of distritititors since earlier steien pictures of c-ther languages were being e:><.aibite::i without the imowiedge of the ariginai distributor. '~ 5.24 There is no cogent finding whatsoever by the DES, as to haw registration of a tiim wouici in any way impede competitiori since registration at a tiim is oniy for the benefit of the Fiim industry in generai. As majority of the exhibitors are members ofthe associatitms, they are reiuctant in screening and paying advances to distributors for distributing unregistered fiims. Simiiariy the distributm ioeses the right to hie their compiairits/ciaims against producers and the exhibitors, if any, making it difficuit for iziistriiautms ta recoup his shares/advamte r'r«:»m the e><hii;iitors/prociusers respeCti\,!ei~,m Without registration, the <:iistributc.~r rriay hatve to tiie rmrrierous iiiZi,§Ei'§iCJiiS in :'es;;3e;r,tii./e »:;ei.ii"ts at iri~;'.§ie, itir s'et'tiemei"it at ris cieirrzs,="§is§;ets?;-es. The \.,SSOC.§oiiGi'iS worit cioseiy wi*'-.'h va2'ic;«us ;:»r'=:i«::?Lr~:er tmreseived cases are FESQi\r'1~Ci in j-ciihis trii:»=_mei. 5.25 i3x<::c0i'ding to i<FCC_, there never' been any :'~9i'er;iosui' ( 3 o

-+-

T") O '1 3 1:2 v D 2:

by any 03'' its erg'-tiora as eiieged i.:>i,r D6. The report of D6 in this respe~;.t is based

-,! evidemze that there has i"ee~rs airy , . ..

i'Oi'EC3-OE;%Lii'€-3 oi cc3m=,:Jet.itic»h. 7i"he or the associetiora permit heeitiw r;Qi'i'ipetiti-tn': i3etWeei'i i'-/tE.ii'ii'i{-BEE'! Fiims a 5": C?

.= ~.

'' \.

tanguages so that Kannada Fiims are not wiped out by the deeper pockets of du 'b3,feP.E§f?.§.0.*3§ §f..'3f'.EUE3-Be WS-

5.?.E« it has been suisnwiited that in fact Kararwacia Films are aimest in m§nQr'itx;

and xrmuld not be abie to survive uniess reasonabie measures are 'taken for their premcatmn and protection. In that sense it is with a View to ensuring fair competition and a levei piayihg ﬁeid between Kannada Films and ether mnguage 'films the: the KFCC is calied upon ta undertake certain measures. The circuiars and public f'tC)3*.iC€.Sh as mentioned in the report of [)6 were issued by the as-.scrc§ation on account of the compmihts and maigziraazticea alieged to have been commiited by the Informant.

2 5.27 it has been brought aut that it caited upon its distributor members not to screen the 'fiim "Lafange Parir:dey"' since the producer of the said {Hm not its» member. However, they were never threatened nor in any way coerssed me) not accepting the gzsrints Cs'? 'the motives as mentioned. in the report of 06. They were Orahg reminded about 3&5 obiigativ-gm under the Memorandum am' regulations 0f' the KFCC, hams-:h,:tha1'. as member an' '(he KFCC wouid wstﬁ any rzorrmes her.

The §ette:' 23.{}7.;3{)?8 merho:'aed in the r:per*£ tn' was §:<3x..'3Q cm 'fr .r*ru.w:\.r~.~§:s.3..=T:" ¥'1\./ .D!*r\.z"1rs§"m:"C!T3i<'H'ii'\=Effsfc; "T51

-.~ ...,...r..w..- M, .,V-=-.-~._.__....'_.,_ (U U'! ed bx; vio§at':ng the n-.'::rm5 KFCC. Thés fetter was issued E" it in e«::»::orc§ae'zc:~::- w'*.'t:'n 11:1? es":3u.*'ih,e ;'3iae'~,Iir"z-'av ﬁei"

- u for' regional ﬂ§i'é':f;

and ne§s--:'eg;ionai 'Slims. Letter' was aés-3 issue a=:«:cJrdavc.e wi'th the eL'»§ecéti"v'es ehshrine~i'i in its W3En".OE'a'E":C5L3m 0*?"

The 2.3%.": §e"'cte:' is guise iﬂ ar;/;., \.«\zi*:h its estebk' riurriber at nan--i<a.nnacia films to be exhibited. it is mere} E3 reminder to its V menqbers as to its decisions.

L .2 5.29 According ti: Ki-'CC, ietter dated 02.08.2010 was issued "G M1'? Pai Enterpriises in View of the compiairit received againstthe informants and net because of the order of the Com.missii3ri. .Si,ich ietter was issued by the association to its awn meihiaers in aiccorciahce with i\/iemorahcium and Articies of Association and cannot be faulted. The iettei dated 14.08.2010 was also issued in ai:i:i:)rdam:e with its i\/iei'noi'anc:ium and Articies of Association. The meaning and intent of the said letter is to the effect that it is seeking ta T reguiate the inter-se deaiirig of its members. it did ricit pL.ii"{.)Oi"t ta meveht any nan members from reieasing fiims in i<amatai<a ianci has sought to reguiate the deaiing by its members with non«member's.

5.30 KFCC has aisci Siibitiitted that the impugned cis'cuiai's and is-ubiic notices were issued on account of maiiziractices at Big Cinemas gi'OL.E_D. The caii of KFCC to the music. mmgriosers ami other iiim i3erscmaiities in i{ar'hatai~:ai ncit to attend the i<ai'i'iatai=:a iviiisic axiiramiz 'iimctioh he 'ht-aid on 22" ;-'-'-.ugus't, 2.010 crganizeid by "Big ~Fix/i"'i_, the tadiczi 5'-tation Cit: 'i"-.Ed by the Reiianvaze i3i"oi_;;p was on acctmht of maigzirectices »:ah'ii'hitt«.=.>.d by the ii'if-mmaht. L;*1'1_'§i';'i;gn' ~':h:.'r {)6 .435:-.

41'} 'J ht to Si.i§'_3i".>E_1E'T. its: t:0i"ic:ii_iSic.~iws G texms and i;Qm'it.ir;~h:s at C-I' the at \.'\Ji'iiCi":

i<.a*rnatai'r;a. it has aiweyfe. to enhance competition by i;i"~,-'iE':g.\ the deep ;1i€3Ci'i'3'i'_S the '};'i'C3Q§'Li{l{-3.i'S_, r:ii5t.i'ibi.itoi'5 at nohv-i-'..ahn wipe out the existence of the Karmacia Fiim inciusoy. Report of the D6, ii accepted, wooiel tantamount to ensuring a pbieyihg fieid titieci he-aviiy in favour of the noh«i--i<am'iada Film industry which wouid itself be a bar to iteaittiy competition.

5.32 KFCC has aiso submitted that it is not for the irﬁormant to try and reguiate the affairs of the Association using the offices of the Commission. if informant wants to suggest changes in the functioning of the Association, the Association itseh' is the appropriate forum where the iriformarit has ample opportunity to present its views. in course of proceiedings, the imcormant has aiso admitted that thereis nothing wrong per se with the process of registration of fiinis. Thus, the ii'1'i§OYi"i"iai'3"£;iS seeking to take the benefit of whatever procedure the association devices for the reguiation of business amongst its memisets, which is convenient to the informant, whiist it continues to ﬂout the oiirectix/es of KFCC.

in course of Si.iiT)i'i'iiSSiC-i"iE_. KFCC has contended entire report of D6 is wi'oi'ig and ertoi'ieous. in 'iaw, contrew to the facts Tmo' ties:-is not in fact give um coi'isidei'etioh to its CC1i'itéi't'ii.QtiS. No oppoz"tui"ii't\,r' has been given to repi\_,«' to, tei:aponci or c::mt:'overt 2-my materiai'. O'L§';E%i" Ei\-'3-"E§i":C€% Esau beﬁwre the DG either hi; the im'oi'memt' or thin}: it-eities and on the basis of which the DC} has given its i"€iI.>Oi"L. The report of the E36 has comgaieteiy vioiaited aii (D m (3 ....».

0.1 .-+ C DJ & J} H-

:1 {U 3 LJ ' . ~31 i'i'iuC.h v (13 #4 ~.

., KFCC has, the t"ir:;t. time, been %m"0r'mant and "me producer' of the said fiim. KFCC cemno': be held responaibie for an *i?.d.%P?%7¢?¢j*?i?Tiéihdﬂwiwi d??'.S.'9". if W? P.?i"F5"CF'~'*" of the W in W reieaséng the pririt of ifiie fiim to the iETFOi'P:'iai'§'iZ. There were no directions issued far confiscaticm of pi"in';s the Big Grow and no bgm 'imposed an the Big Group. [ "

5.35 According 1:0 KFCC, the definiwtioné of "'E.x'i:iusive Distribution Ag"eemem"

and "Refusal to Deai" as defined in the E><pia=nati€m 3(4) of the Act deais. (mix; with "'goods" and rm': to "Servic.es". Even though ciause '3{<3i.) cieais with both "g0i:Jcis"' and "s«<3rvic:es", the definition in the E><;:>iana'i:ion deais oniv with "geods". The exhibition of fiims is not and cammt be a saie of ''goods''. Hence there is"nc.ithirg in the said cieiinitions whi<:i'i cciuid even remoteiy 2-ippiy to the present case. Section 3(4) deais with an adverse effect on c:ompei:ition in india. The last words of the said si.ii:>»:iause are much wider than the phrase "reievai'ii_ mai'i<ei:" and heme the said .3ub--ciai.i:3e w-:su.Ei:i, in any, evené: :=;:.ipiy to agi"eerriei"it or ai'i'angr~3meri*i w§"iiCi'i adverseiy affects compeﬁticm. in iridia and r:-suici wciii p-e3~s.3ib%y appiy 'K3 {Ni on-:3 smaii '2".€-:i'f§€Qi"';f, " ii .. .' .- ,- ' .--..T' w. '.'\'-*w*' :-

,Ei~b :7: %"K'3§1 C.~£€£3i?'y' corn: in «,-,-\.«;c,*-i<2:-r...: i_:c~u:«.=2 L»

--»r~ 2." ~.. i.

3&3 L.?::2 ins.-3:. ii ' £3 ..» "C?

C) Li?

(D D. 0;

my iinan-ciai nor ii«3'g,'co'i"i'ei:i ai'wt*i<:;sci;:'. Ti'ii'3§'-C-3 has mmai' '.*:2e~<s:n i'ei'»e«:ios;m't-3 coi'n;3eti':ior'i by its any' of tiwe 5-ic:':i<ms. The i'e;:>or":

in '3;i'iis3 i'e;~:.p-act is C3;"'i mere iCCvi"i;i<Z?C5Yi,ii'-ES and \r.rii:i':i:iLIt am: :Vid€§'iC9. ?;i'a3?; tl*'s::=.I'=i':' iliit"-:E'i zimr foi'e«:.ic:=.;u,i"sse GE {L-3-:*.*ipi3+:tim. L 5.37' it hazs been :3' (D med that anv Oi' E-i.C'iiCii'iS i"iave av :.»s'i:i=viSiD:"r; of Aci: mi_ici'i *e:i'i=:23e of Sergtic * 3 ii {.33 denied that it ever acted in vioiation of the interim orders of the Commissicm ' as has been alleged in the report ca' B-G. S.3§3Ai<FCC has also subinitted that the finciiaigs of D8 are <::oi'rec'=; that its activities are not vioiative of Section 4 of the Act since it is a non-prciﬂt ' organization registered under the Societies Registratian Act. As has been ccmciuded by DG, since it is neither an enterprise nor a group under Section 4 of the Act and is met in the business of disti'ibm';ii;>n cf goads, the que5tion of its domiriance, therefere, €.i'U{-BS not arise. The correct ime="pretation of Section 4 of the Act weuid suggest that the coritroi of assacsiationis and their affairs is not at aii cohtenipiated by the indian Conipetitien Act. 5.39 Ccmciuding that it has never 'acted in vﬁiiation of the Orders of 'tiie Commission and that none of its actions have ever vioiated any of the proxiisicms of the Act, KFCC requested that the present i*eferem:e may be dosed.

in <:ci=.sr~3e -Cr? §3i'OC%":'.€~"'3ii":g.€, reeiies were aisa i'iie=;,i etiier wine have been named i'es;3on~a'en"'£5 itiie CBSES ﬂied tine: iriiom'iei"-9:3. i%e;3ijirci§'Eii1!ii">ﬁ;.{E}?-Zii'i Case Neszﬁ} 5.41 in i'i.S i'epiy' cieted J.4ii.G1.2C~11 and 1r"i.11.2=311 by EZii\/iPA,.{{3Pi-2 in case no.25), it has beevn sui3mit'ted that it is H03; <:om*:ec'ted wiih «:aa'ry'i:'ig an cm' any

5.'.rUS3.i'i€iE::'3 sictiixiiy Oi" ;'.'.-£3i"'CiCLJi3i'i'y' in of r«ic'wi"e or fiim 0:' ::inen':a. it has 3150 been sui?mitte-:1 that it is not in :"ii i :'i..ii'ming of any" cartel of 'film pr'oCiLiC,ei"s_, c;'i_=:i;="ii:sutoi's or e and ii: $30625 not f£.'.=2€*i'C.iIS6.' er V»»'§Ei~'..25 any statutcmg '.5 T X '.3 ceririecgtioii with its activities and it is not in any agreement in respect of pmd.uci:.iori, distribution ar exhi.biti.ori or CD,i'i'iZ'i'_.Q.i cm' fiims which may c.au..se AAEC within iridia.

5.42 in its SLibmiS.3iCH'i, EiMPA has rreeritioried that it has four ciasses c:-f members -~ Producers, Distributors, Exhibitors and Associate Memi;is;rs. There is no statutory cibiigaticin on the part of any constitiierits of the fiim trééde or business to becsame its member to do business within the territory of Eastern inciia. in order to pratect the interests of its merribers, it imposes certain ries'criic'ti0ns on its members against dOii'ig busiriisss with non--rm3rrii3ers. The fiims prociuced outside the i:eri'it«::ry of Eastern iridia which interids to be relieased wiiziiiri the said territory for exhibitiiari are required to be registered wiiii it i:>efore its members may agree to do business in respect of such iiim. Ti"ii$'§S cicine oniy to protect the iriter'ests of its unsiisgziescting memiaers wirhout vioiaﬁrig ti":-2 *;:ir<:s\./isioris cf the Act. Whiie effecting regisi:rati«::ri Gr' 3 fiim it attempts to firirsi -:3Lrt whether any coiimiaiiii is pericriirig 9'? any of its mi'-zmbers I against "tiie i"im'i or _r:=.'0ducer csr 03.is'trii::»w:or'. ii' aw ci:mpi:--3'i'r=' is peric.'-in_g she v .,._ c«:mcemer_i i'i'i¢E3i'T-'.i13~E3i' is m'3"I:ii'ied anti i.:ria=_>. rziarties am asked to seifcie their «jisjoctes.

5.513; Eii'v'iP./5\i'ias sL.=i3mi'i:ted 'tiiai the '3~r='2s€:'rit COi";'i 3iE}ii"iT. not mairitainai;iie' E as th«2i'e is rm viciiatiori Act p-artici_iiz:i'iy Sec:"cic:r'i 3(2). The iurcwision for i'e,_e3Jsii'aiion cri' riirris is in OpEI'Ei.'i,i{)i'i iar a iorig ":irri~:-3 amp': is imrerideci to act as Si'ii<2ii§ iici §,3rciiec?t_ iihe im;r:rcsi. of its memb«.3i's i"i'c«rr'i =..=i"ii<ncmm and Lmsr:i'i.i'3LiiciLis \ eiemsmts of the fiim 'i;i'aici<e but pr~:3visiori does riot in '- '.

:r:»r'r;:»e*:it:cm. riixmx iiim ri'i-as -fji-S'ti'ib-'.iT.E%C3 wir_i1ir'i the said iier same being regigtertad with the Eii\/IPA as happened with the iiim "Prince of E.i.iviB¢- treq.ute$:ted, 755?.-4...;Q9Q§i€iTﬂ-E? ,ie?§'hii.b~§.tQr r»gt,t.t:tt<2 'r3a'E\fe..'§C%Ze,__.'?;.}j}.£e. <:iisti*ii3u'i:0;r"t: share of the said picture «:>ni\; with a View to ascertain if any of its members have any claim against the said picture or the distributars so that the same may bf-2 settied first in the interest at the trade and busines?5 and has nothing to dc) to hinder competition in any me-mrier. Centrai Circuit Cine Associatian (CCCA)-~{ OP--3,4,5 in Case No.--25) 5.44 Centrai Circuit Cine ASSOCi«Ei'[iOi'i {COCA}, Bhtisawai on behalf 01' its units of Jaipur, Amravati and inciore in its repiy dated. 01.06.2011 has stated that its membership is not compuisory. The members join their asso<:.iat'ion-rat their own free wiii for their own intereat. The film distributcrrs are free tr: reiease their ﬂims in their territories .according to their choice of theatres and number cf pririts to be screened. The associaticm has never issued any digcriminatarv ciirection regarding the reiease of fiims in its 'territories. There is no dis.«:rimi"iati«::n regardir'ig reiease of i'egi0i'iai am? i'iOi":~¥'€' iesiai iiims rv L2'.

x.' in "'2' E E3:"i'i'i;Qi'i€S Lander its controi. The distriizztitors to rei--ease b-:3-J": types of iiims at any number of theatres according to their ci':c»ii:e. it has nothing ta tin with "'Ci'i'E;' c>r2i3r"<2ting in Karr.atai<a Fiim Ciwmber of r " i mites and regtiiaticins wiifri regard to compuisezary smeeniiwg of iwegionai movies in the Ciriem:-.25 faiiirig in its t=3rritories. 5.4" i K r-*2' ii=5 beer'. br<:migh'; out that it ritir*.-;:>r~:>*;"'it er-ii'riii'ig 2-md rior:--"i"radii'ig C-Di'i"i}38'i1\,?, are is r.>i:25tL2iate"'- under section 25 «.:n.' the iigmpsmies f-'xct if:

iaeen estsibiisi'ie<:i i"=3r attainirsg the aitjects per its ixkiemc;-rs :15} 'k 77 \\ Association. it is an Apex body of aii the distributors and exhibitors itsrictieriing in the regions of iiaieisithm, i\eiadhv;3 PsF&1ii8.Sh., Ctmattisgasrh, Vidarbiia Nanci ii<iigi;iiésiii'ig%g:ong giiiigiggiiigiiasihiiriamaha is re;-iiaigaioii eriernetiriig '¢'&hr1Ciit3ii\.7'ie'i."ii{;i_iAig the cause of the fiim trade in General and distributors anti e)qh':i:3ii_'0rs. sector in particular. it has been formed for furthering the prometion of the iritiustry and as .3 reguiatory body and 3 domestic tribimai to discipiine the cs-nciuct of its rriembers, 5.46 One of the main fuiictions of the association is to reguiarize the ﬁim industry as a supervisory; bedy and reguiate iriter~se business dues recevery cw' members of the repiying association to the entire exciusicm of Judicial Courts.

Eeing a nonﬁrreidirig organisation, its expendittire are met out oniy with the subscription given by its Members. The income so received is spent for mrthering the object for which it is frsrmed. it is for this reason that these companies are specificaiiy exernpteci fmm necessity of puttirig the siiiii»: of "i..imite<:i Companies" after their ricmesi The memi:»ei"shi;3 «sf e:<hit:.-itoi's and distrii:iutc»rs vaiui":'tar~,'. HO'\f~.N3'v'€3l', once a Liter er e:2<iiibit.r.::r isemmes member, he has ta abide by the ruies and :'eg=.;istions provided Lii'i€5.€i' articies and memm'aridum of association 3.4? CCCJLX has subrriit'ted that inter---se t.iisi:~i.r1:»:~3s as i"egards to the pagrmesits oi dues between its members nameiy the distritautors arid e.><i'iii3itors are beirigg out as per the mies macie as "ii'i«:>. ari:=%tratirm ruies Of the Ce "-tr"~i Cii'tT.i,ii'Z ('J Cine K-\ssociatiori" wiiicii Came iritcs "force on 1." i'\./ia'§..i, 2062. As pe" "

of the /kriaitratioaw and Coriciiiaticm Act, 1996;, its E.::<e-:;utive J\.¢';..

1

-23.

"ii"=+:: awe r I/,,,g;:¢~,,,,,,., ~ 2 v--

in fexroiii" at member who is the / .a megnber and the membership of a suspended member is resiored, as sxocm as *€"e-5*--*:'???*':'F'F"%'rj '7F?.€'*'?'F7»'='~?'/T"<??'f«F??E*7"*b€f 4'3"?€."»"3*-'-'-"T1"d;9biﬂﬁil.£?B3'S off :h:=edue--e§..ref the decree hc:a§der/ the member in whc:-se favour the arbitration award been passed. Articie ma'; of az'ti<:.Ee5 of essorziation postuietes. for a di§#;:'§buto:' or emibrtor member to haire business deaﬁengs with a person oniy when such person is a member of the ass-:>.cia'cio_n.

5.48 Articée 12 of the ar'tEc5es ef association pe_s*;uia'tes. as to when a member ceases to be a member. ln Clause (e) it pestuiates that the member aiiows his membership to be determineé under these artistes. Articles 15 deais wzth suspension from menwbership, provise of which states that en payment of dues the membership of the non'-mernbez'ship can be r'es'tored. 5.49 According to CCCA, the cwerail effect an' ail the abo\re--said articies is that a member who comgﬁams of n0n--rer:c»very er' dues from another member, an arbrcretiorz aware is passed in 'favour of the member who owed '(bet sum 'r'rom another rr1.ember.r This. rec;over'y of =::iL.2es is 't'h-:9. main r"urw:t%on er' the assecéatiora arurﬁ. if is is-3:' ex' c:on*s:'rv;t-n §*{$":C:'x,f'»,*iE";'§I~i'L-"1 'the'; hardly an'? iitigatioh C'?)ﬂ'{'*E'E:'-,'('i in L)' P Csvii Couris \/'nth regard to reccwery «fr dues [331 the e><h§3.3':r'€=;3r's end distributcws 6 7mi'.es'--se. Hcsw~:~:~..Ieer, t§":ere ere num'r3e:' of ciT:3m%:m':csr' rr:ernbe:*s who man: its men berg a.:'2.::i '~,/er t'ne\,' ebie to function :3 distrii3u'r_er -T32' e>:hE'r3imt' busirressmen in the» region 0% Chha*&§5ea:'r*, Rajasiihan, 9»/iadiwa r':,:'1e em i<§'1er:'~lesE'z :"eg'ses':s §\.z"::-.sr~,:--2**"«<'h'-"=""

1 14.:

L. U. Carder the main work of ihe Asseciatiion was found to be settiing claims _.,bef9w.¢eﬁ E5..i¥'i«€???"§?.%%€"%_. iinteervrzsé er7eLb.e%:i~r~':e.en i.Me_m_'ee='-52 we i1§>r1:I%¢'%ei:r>i;?._e¢is_.e which couid not have been done without the sanction What me Registrar of the Reswictive Trade Agreement rsalied the boycait. ii; was also determined that even if the discipiine or resmction was a restrictive trade practice it wouid be entitied to gateways under Section 38(1) (b), in view of this specific advantage not eniy to the parties to the dispute but aiso to the consumer. ivietien Fieture Aeseeiairiaiﬁ (GP~8 in case ¥\ie.'3_5) 5.51 in its repiy dated 28.12.2010 and 14.G2..2U11, MFA (OP~8 in case £10.25) submitteci that it is registered under section 25.91' the Companies Act and is concerned with Deihi, UP and Uttaranchai circuit in india. it is naticompuisary for every fiim distributor 'to become the member of the association or to register its iii-ms with the Associatirzm. The membership to the ass«:>ciati<:>n is hiiiy and ::::>m;:»ie'Iei\,r volLmta:'y' and no c<:ier(:iCin or force is exercised by it am am! one take memi,ei'§hi;3. H«:iw'ev.r_, the §'3€:"'E1-.'.3E'iS, who ijnecame 'ti'ie members =3?' ﬁne Association, have ice aiiaicie iny its mis-2. T'.

J! x3 .3 Q '*1 :12 7:2 r;

5,"

,4'?

Ci .:' 5.52 §'\fii~"/3. has air-.<:i stated the: it is riot engaged in praductiezﬁ 'J disti'ii3u'ti«:m, si;0i"age or ai:.qui<siti0n of gjimds or sierxrices and no ac': of ii. .._ ...-.,..-_._ll, .n_l--\T A, ...C.''..... ...... .........,...».--§.'..--.......'. «.7... x-.--3§- -3.-- ..-..a J, -'.:l}J§..'E': * *r:lLJS5 L1L."':: -:-. es =,=:-Li. us: u.m;;;=:='_i'=ii«_.>:a i.:'~.ia'r.'.5.-2:: i.3!LI.w;. ii. 2: C'Gi":CEa i'u:~_- -'?:i"»5;r with its membe:"s amti dives not :35-ii goods «:»s' servi<;es :(',k--~"l §_:;ene:'ai c.cm.sumers.

--- . . I - . . \ . . . ti, ..

:i..'?-3 i'\-'lF*»'% has mi':h=.:>.r S'La'£E3~".'i ma: cm 10 ' _a_'~9sﬂ .. u DiST.'§'iiZrU.':-D£'S end the Fiim i\/iai:ei's' CQmi:»ir:.e,. 'ti'i€ agtsex i?w:.u'.«~' ' .£3.s5c:Jciei;iQris. The ~;ii5t:'ibu*-zicin rii:h\':s are "r'm'usted for Uncier the agreerrierit dated 10.06.1994, both the producers and distribtztms agreed togive a gap at 5 yearsifQr.sho.wing the ﬁim thmugh sateiiite.;'ts:=.ievision i£i'C.'.-'r"':'i the date of theatrical reiease 50 as to safeguarizi the rights of ijiS'i.§'ibUiDi'S and exhibitors with huge tinariciai stake.

5.54 The main metimd of assignment hf disti'ibution rights remain that of Minimum Guarantee in which losses are to be borne by distributors exciusiveiy whiie the profit is shared equaiiy between producers and distributors. Even today, more than 80% of the revenue is generated by asgigning distribzitiari of theatricai rights and therefore the interest of distribution sector cannot be jeopardised mereiy for earning 20% of the revenue by disposing sateiiite rights after few. months of theatricai reiease.

5.55 According to MPA, in view of the conrciusive findings of the DG that the Articies of Association dc» not contain anti--Com;3eti'tivej' obiectionatzsie ciauses and its membership is heat i:-:;mpuisoi'\;, there is no vioiatioh of the i:src»\:isi::ms 'Sectian 3i3'}{i3} Cut the Cc.>m;3«.:2titic;n rlxct on itv iaart. 'i"hei'<,=: are certain aiiegatiejiws against the KFCC iaiit tiiey dc: mt craii any repiies tram ivii?---'x. it aiso been i"oum::i in course of ina;uiries that merrihez"s'hip of Mi~'A Deihi anti i'icir'therra iv'iPA .}iE'£i3i'§iji'i'-5'4?' ttitv mi.' CnC3T:"if£iL.iiSCiF\,f. i3us"ti'ie2r, EJG COi'iCiLidE'L)i that my tzaze i:»-9,» out agaii'i.5t i\fii«':»'-X and -:3thr:ér associatitms under Section 4 of the Act since it is a i'ii_')i'i~iZ'C)P"ii'i'iE':i"CiZii oraariizatiori. Therefore, in View of the iinciihgs E36, its name "h=f)Lii~Ci ' arraxg of parties and the. i'10't5.«:.': a;3,ain;at it be wit:htii'awz'i. . /-

'''~'-.,..~u//'' Repiies by SFWPEEA (099 in Case No. 25} S353" i'i\/iPDAi'rIi i'ts'crecp'i':escd3tced iD1.US.2D'l'l ahtf 13{O1.'2G'12'i'taS"'5u'i5mi'tted'that since there is he speciﬁc finding in the retsort of [)6 against the association, no contravention can be found to be estabiished against it. it has aiso been submitted by them that the association has aiways acted Eh a manner which protects the interest at the weaker grcwtzp of ﬁim industry by putting certain ruies and teguiaticms in process. Since aiiegaticms against the association are not specific but genera? in nati,rre_. they shaii not be maintainabie. it has aise been stated that no penaity may be imposed on it, since ét has not contravened the provisions of section 3 of the Act. . '\ 5.57 Mere requirement to register the him with the assecieticm cannot be saici to be an anticompetitive action under the Act i as aiiegeci by the D6. The D8 has faiéeci to show that this requirement in any marmer has AAEC in the relevant :mari<et. The cmiy persons having any iocus standi to complain against the CCm"i§'JL£iSC}i"\,»' registration are the memhe:'~~distriL3utQs's whca have never ﬂied cempiamts :'egere'%ng the atmve requirement. regards the im3'ihg,s at DG that the asseeiatiroh directs it i'1'iE3iT'iiC!-S3i'S tci attain Ui".:dE'.i'i«ai<iﬁg frorn -;;»rt;>e'uc<e:'s to retrair tram teiecaeting fihtis ti':rougE": ter:'esti'iei er teie\Jisic:i':;'£::5:>ie e:xpi<:»itat%oh either eiirectiiy or indii'ecti'~,I for period tn' six months from the date of theatrical reiease, it has been stated that the same is meteiy a sug,gesti.:ri made by i!"v'€PD#\. and the member:' tr; no marm= mceci to acihere to the same. The D63 taiied to §;'.-§'O\.-'E as to how ti < /~\c*i:.

5.58 Fr,zrt'ner, this ipract':ce is in beneﬁcial 're fair Campetiﬁfhﬂ in the market and promotes free and fair t.r.a.de. if in the »present times a film is r'-eieased simuitaneeusiy in theatres/meitipiexes and in modes such as sateiiite/'TV/'»'ideo, the distriiautors shaii 'suffer huge iesses. it is ebvieus that the demand for fiirns in theatres and muitipiexes shaii reduce to an enormous extent if the fiim is reieased in Sateiiite/TV/Video modes at the same time as in theatres/rnuitipiexes. The revenue generated by the fiims is at a Bex Office and in case the fiirns are aiicwed to be reieased through other' modes simuitaneousiy, there wouid be huge revenue ioss and set back to the industry as a whaie. The abcwe restriction is essentiai and reasonabie in Order for ihe distributprs ta sustain in the rnarket, Bihar and Jizerkhand iviotien Picture Asseciatien {Qs$'~'-B) in Case Ne. 25, Si), 53 am 6%) 5.59 B_H\ri;3'A in its repiies has submitted that {)6 has quoted a part of the Article 18 :3'? the Articies -oi' ,5\5SOCi€-Fi§Di'. wt of context CQi'i'CELid{3C§ '=;n:-it the

- 1 "\ sarca ptrrtiran oi the mrti<:ies vioiative of Secézierr 3{3)r[b} m' the Act. E3.&3D The inmugrxeci Articie of the Ar'rEr.:ie¢ oi .-'~'s':'.SOf;iE.i§Qﬂ does net COiTi&i§i"t ' .~. .' ha-' » --~' . -»-4-',-m ' "L"\ fl' t'\', mu' mi: 'JiOr.rLi\%3 er S§'C.Li'J:: ;3g.«,~ 'L J the

-.._»-

interest of the merni;rer's oi the aasmtiatim that 'ighe mem'"-"W rhcrnici not UCIDI D erdirrariiy have cieaiirrgs vmh i'sDE":'i'i'r€iTriZrC~.i'S wiwc;-5e éﬁusirwe simiiar in i"IEsi_'Li.i"E3 «:>"Ei"r6:i'MS*:T*. '-*.'nere wiii be a';Or";'iiir':i:

between them and the association, 5.61 in its repiies in case nos. 50 and S8, Biix/iP:'-\ has brought out that as r_ega"jS teiieL?_a5't T935?-3"7?3Hm 'ii-§""?5 1"«,i'="%'iF¥_5i'? .$'5i€"§ise ..:;,hann.e.is...--bet.ti the informants had agreed not to teieszest when the peried of restriction for teiecasting was stiii in subsistence. it sent letters to the informants caiiing for explanation as to why action sheuid not be taken and why penalty shotzid not be imposed for vioiation of the said declaration and tindertaiting given by them and when there was no response, renaities and notices were issued stating that all the members are cautioned not to deaf with informants.

5.62 Actttwding to BJMPA, because of the petentiai conﬂitst of interests bewveen the producers, diS'i.'i'§bU'CC)t'S and exhibi'tors, an agreement was entered into as eariy as 10th June 1994 whereby the apex bodies of Fiim iviaiters Combine consisting of six eminent film producers and Fiim Distributors' Council consisting of six prominent Fiim Distrititztors hatleegreed to certain restrictions on the teiecest of fiims tE':n:>::gi'i sateiiite chenneis, The i'estricti<:>n is due to the feet that any fiim which has been teiecast on TV' c;t;:at:n-:~2is wiii iose its I;ai3«_">.€.'i'£',»' to fiim pettons to ti'ieet.tes 'fer c:oim"nei"ciai e>~Q;.-it3itei;ion.

it has aiso bi-'.*£'.E'1 that the D6 to aopi'e.~ciete- the meche.='iisn't of "film ps'«:>cs'i,iction, disti'ii:)uti=:>n and E'>"i"tit3iTIi0ﬁ. Even The Hirn Federation of indie, ivimnisei has iamtight out in their tepixy that no v:itn-er inttftistiv en-sf tracie -;nio\,rs "free and ct:iin;:-etitien wittiotit itch': any z,iei"tei's; nd "

iﬂxcczcirtiing to the i3e:3ei'ation, the h according to the Federation, the pror.:iu::er5, distributors and exmizritors air to seii, acquire, cietertmine price, suppiy and exhibit picture for a particular territory apprciaches. his reSper:tive asseciation for r'egistratirm of the film acquires? by him fqr the/.t pert,i§i eziti iiiisi iriterest. Thus, the distributor as such expéoits the picture thmugii exhibition at verioris cinemas by.enteririg into agreements with the exhibitors on the terms and canditions as rriay be mutuaiiy agreed upon by them.

5.64 The Federa'ciori has categciricaiiy stated that the Assecietions neiither determine the price of the pictures nor participate or interfere in thr-2 dealings of the producers and riistribiitcirs viseéwris ci'istribLitors and exhibitors. Fgirther, e free the pictures of their own choice as may be muttiaiiy agreed upon by them. 06 has not given any convincing reason fer net ac.::e;3ting the views of the Film Federation of indie which is the apex bczdy for the entire countr\_a consistirig at ail the parties connected with the fiirri. trade.

is not the case of the 5'35'.-3C3Ciai'iiCJﬂ wrsetiier there sheuid arm; L ll restrieztiori on the teiei:astii'tg er the picture thr-Laugh sateiiite r:harmeis as it is far the producers, dig-.tribui;r:irs e>ii':ibitcsrs to C'iE'.CiCi€3 cm titre This because time isrice payabie by diSTi'i'bi..i7CU!'/€>ihi§3ifCJi' to the iiim pre«.3'ucer depends on the iength of restr'iction or: teiec:estirig rights tiecetise c:irii:e e icture E3 telecast ea'; seteiiite =r:i1a:"meis, the cemmestiei e><pir:»s'teticsn of picture in theatres wiii eirriest to an end rautting the distributors to a Con;:Ecier'ebie ri:~i<. it is oriiy to avoid this z'i§:i' : '\ ( ber;i\,.' at tiim ;' rodmerax distr'it:titors in an :"é3E"_ .?etirfitr«:i.i:i,«é .:;q.;ere.te_cr. _. had come to an understanding about the period of restriction on screening of fiims tivough eseateiiite .:_haTn:nei§.

5.56 it is for the producers, diettiiziutots and exhibitors to medity such terms in advance in consultation with each other the 8iiv"iP,€\ cam-at have any objection or grievance in this regard. The gi'ieveiice of the association is that both the iii'?-OH'i'iE3hntS have in the first instance agreed to the restrictions and collected the iuii price based on tiicase testriCti0n.s and thereafter' vioiated the terms of agieernents by screening the films 'Chi'OL§gi"i sateiiite channels. The B}i\i'iPA is aiso not objecting to the said sateiiite screening but oniy wanted the informants to share the undue gains made by them by teiecasting the fiims at the cost of the distributors and the E'}{i'iibitOi"5. Further, the resttictiens reiating to seteiiite and teievisien broaciizastieg is a teasonabie restriction based on cemmerciai considerations and it shouie' not be seen as anti c.omeetitive under the Act.

5.6? B.ii\-'ii?'x'ix it"

as submitted that the main ptstgaeee 'for w'nit:i1 the ti'adi.n;g cemmunity in the tiitn incitistry became their mem':ie Asseciatien itwovides a piatfcsrm for e><3:.»editioL::. settieme 1 sins, ai'ising cut of me entei'et;i into igiy ari:»iti'etion pi"o\.rided by the esscuiietion is C§LiiCi<Ei' and speedy reiiei to the i'nernbei':3 COi'1C€i'i'iE:-Ci as o';hes'wise, 'they have to settie their C£iS'pLitES thi'c+ugi'i CfJLii'T.S witicii wiisi e iong diewri §3i'UC.E'.SS intiiméiiig the .- mqixied. in \\ O:'<';i€'i' to isreven'-: the rieininant i'OiE at the 5::-i't;:iu<:ei's, ti'i_e' ~J \v' its member; to register the egi'eenjentr' entemd inte iaeftw \ 5.68 According to Bifx/'iP!.\, to regulate the film business and t0 safeguard the l>riterﬁee_'tU_ef.ell tlf1lj_§£3§__E_E_§,'§C>,l'S; _i..e_. D;fl'Dd.UC€:,FS, .clistrl.buters and. exhibitors have formed their respective trade bodies when cinema came into existence. These three sector trade bedies have jcatntiy been taming the ruies and regulations 50 that the rights of one sector are not encroached by the ether sector and also to aveid any iitigation ameng these setters of trade. Brie of such regulation is to get the registration of the film by the distributers with the trade bedy functioning in the territor\,r to safeguard against the multipie assignment of distribution rights in a particular territory which also includes the safeguard efthe interest at the exhibitors in that particular terr'itc>ry. 5.69 it has atso been submitted.' that it is cemmorr krrowiedge that ail associations have their own ruies and rlegulations and generaiiy m:>n~members carmot deai with the association or with the members at the esseciaticm under the umbi'ella of the associatiorz. However, no distributor or exitibiters has made any ctrreplaint about this rule. if sueh a ruie is 'far any reason tzensiciered

3.»nti--teempetitive, no assoelatiorl riet cm.ii,: in the 'film trade but 're »:w\,r trade

-3!' activity can function.

%E33l'v'§P.»'-'a has *fur'c'reer' eul:»mii':tec§ that; it is imrrrerei on the wart at the ;m'ermants to errter irlte agreementtz Jtritlw the clistrilmtcwrs that they will not telecast the 'film for a peried at five years. from the date of theatrical 5Cr'ee'eirtg~; 0.3 :3

0..

EL :3 {"1

-*4- Q3 . huge a=:'i\.~' trees on that C:{)Ll1't5*.'li'C!l"l": the tlistrit::uters. but gt'; laeclr. on mltment and eeliect hefty «a1":":CJL£l"l'£S by M 571 Over the issue of dominance, BJMPA has repiied that in the matter of Wm i3'V0dUC'fi0ii; di5tVi,§UtiQn ,em_:i e>.<.,hiebi£itQn, itig eti'1e».Fiim ~P.i'§')§itiCE_E'_\fg'i'}Qv§§ii,i§ e the sihiotsi to eiecide whether the fiim siimsiti be a big budget iiirri, medium budget or a low budget one, Thus, it is the iiim pmciucer who decides the price of the "film depending on the cast 01" productieri and other variabie costs. Once the price factor is decided, the production cempanytries tr; maximize its revenues by coiiecting iwefty advances from the distrii';»utors who are iocaiteci aii over the Country' iriciuding the territary or' Bihar and .ii=ari»<i*zand. For coiieiztirig the said acivances, the preducer and the distributors enter into written agreements to protect their respe::tive business' irrterests. VBJMPA has nothing to doe with the contents of such agreements and therefore, the question of BJMPA being a dcaminant party {and forcing anti competitive activities under section 3 of the Act does not arise.

in .72 it has aiso been :~u.bri*iitted that the: dispiite betweer; the parties in the ceses before the C-:>.='tsmi5'sicm erase rnaiiniig because of the teiecasting of ::eri:eiri 'iiims. th:'o.2_.igii sateiiite TV Ci'iE';i'.i"iE*iS by the i§"iiCC,'-i'!":'ii-1E"i'ES in vioieticin of the agreements emtererji into betweeii tiiemsieives erici the e'i5ti'i?:mtm'5. The iniormarms iieve that their wiii moi; teiecast the 'fiims through :ie.'%;eiiite c:iianrieis ior a Q-§:i'iOCi of five years 'fri3m the eéate cit corrimerciai reiease of the .s.- * -I .. ., -~ ix- .-

Hm. hisFDFUIE;)i"HC"'"'"5>,:1\-'§i5Uii.;t.i'iQi

- w .,.\,.z L 'K ...

E 'r\.5i itors to decide 'u'v'i'\.€i.'iiEi" the U! ('U 1 five year iimii; i'ee:it:»nai3ie or riet ti pri-::e pex_s'z~:i.iie:- in; eiistributor "

e><.iiii3ite:»r to the iiim pic»-::5t1':.er dteineitjs on the iem.vri'i of =' 'D-

teiecaaztirig rigiits once 2:. pirgture is teie-cast on seteiii

-.:err;mei'i:iai e;><pioi'teticm oi' _;3iCi_'Ui'E in '{i'iE£-3~"E€i'S wiii aimestigc ~ >< 5.73 insistence on the registration oi' as picture before the release is done to . reguiate the ﬁim business and to sa*Feguard_the int_<_~3r,C::§i_Qf..aii the three s.e~:?;Qr5 producers, distributors and exhibitors so that the i'ights of (me sectc:>i' are not c--:«nci'c»ached upcin by 'Hie C«ti'ier sectcr and aiso to avoid any iitigatiorz among i:he5«=3 ses:'zors of trade.

SL7-»'i No repiy has aiso been ﬂied on subsizantive issues by Northern india Eviction pi«:'tui'ss3s Associiation in case no. 25 in which it one of the resparidents except fcrr submitting financiai stateiments. 5.7'5 As regards Teiarigana Fiim Chamber of Ccmmerce, Chennai Kanchipurarn, Thiruvaiiur Districts Him Distributars Association and Qrissa Fiim Dismbmtors 1 Syndicate, the ather 'three res-poncient parties in case no. 25, [)6 has faund ma evidence of any a:nti~competié:ive activity on their part. {)6 has aiso re;3c.n'ted that the Informant was aiscs not abie '£0 furnish any infarmation of anti- c0i'n;:.»:-stitive nature against 'them. in re5;ponse to the report of DG, Teiangaria F-iim Chamber sf CC_7i'i'ii'Tii'-3E'CE' e><e:«2;;1ti'-3:' mating in its i'ep¥ies dated 29.09.2011 that i;i'i<3'y' 3'10": in pC2s.iti«:»i'=. to 5u1f:«ma'?. their because of agiitatiori in Dist:"ii3ii"-cars !--\ssocia1;icm am)'; C=i.'issa Fiim Dis'trii-utoi*s Sya'riic;ate have ziéso not oi"ferer_:' any raepiies on the rep-:>:'t of D6 in case 1235 of 2910 in vvhich they "I Repriieg -;>i' infnu-i"mai";*i an Reparfta Qf BS in icasse §"'<:°s. 25, 4-3, ami 5%? ~; D473 .r'€--s:3c.ir't, the iz'ifor'mai'i't in case i'i<'_'3. 25 ' which i-(FCC is n:_-3ms:>.d s'«2sp=mde2nt} aiso sL:i:>mitted own ,s§e+ \ 1:

I //,1.» vide isutsmissions ﬂared 1/11.012011, 24.Ci1.2D:i_"_'L and 26.0-=3..2Ci3.1 and aiso in course of hearings before the Commissicm. it riasA._h§;§3_hj.sia:gri_>h}g_»rhgAVi:r1fprmant that having the process of regisi;ra'tion cf the riims with any partir:L.2iar association as such is not an issue, but issuing a mandate that a fiim which is not registered with srich association' cannot be distribui:ed,'e><hibited by anyone or r'egis'tr3i'ir1g the fiims against the "payments being madé 'to the members of such associations is anti~compet.itive. KFCC can urrdertaice any modes and methods to promote the Kannada fiims like giving com:r-zssions in reg-gistraticm fees for Kannada fiims, creating awareness amongst the gr:-zopie for prorriotion of Kannada films and giving subsidies to the Kannada fiim rriakers, etc. but it cannot decide the number of screens on the basis of iahguage.

5.77 The informant has brought out that instances cited in the iiﬁorxhation show that the film distributors associations have tried to contra! the e>:hibi-hon and explcsitatioh of the fiin-is in such a mam':-:-zr which is agaihst the free and heaiithy cornpetitioh in the mari<e"'c.

5.78 A«;-cording to this im'or'maht, a"ihCiirgs of D6 are e:>::i'n:-iustive and rr-eascmeci regards Eii'iU'-CDi1'i§Z3E*;i'£iV€ pra-iﬁcras and ccmduct on part of associaticans i'iE:a'i'i8d in his report 0'? ihxrestigaiiiori. i-':csw«.=_=.ver, the i"ire»:iiri{,_=:_s rnz~:::2'e hy the that 'there- is no xrioiaicicm oi Serfigic-h 4 mi_isr be nsvisited. The in*£'ormarri: has sui:1mi"rtedicharthe opinion formed by the DC: that KFCC may ram. iaii under the defiraitiori of ent<~:r;s:"issa is 2'20? correct hrscause *; dei'irsi'r.iQn wide erusmgh «:5-\»'er any person iv am,' acti\v'ir.'i_r nsia'r;i:'zg to 'the c§ish"ih==':ir.m of '*c>0~t:is.

in the ii'iS'E£:i'E"ﬂ'C KFEZC is esiaaaed in the business or 4' C3 L?

[1 Ciis:rihui:ors,. whu are its members and is deciding 'ch ' f which are goods. Therefore, it cieariy faiis within the meaning of 'enterprise'' .,a..s...d.efin,ed.34-Otis? sectién 3,i.'="-ix. fire inifmani We ?i5??..F"5'3§3F:eed with the finding of the D6 that i{FC.'C is net. in a dominarit p¢>siticm with respect to the fiim ciistributors and exhibitors because ariyone who does not adhere ts the dictatesfivies and regulations of asso::'iatioris, whe'i;i'ier' iawfui or uniawfui, is biackiisted in; it' and rest of the members are directed riot ta cieai with such biacidisteczi member in arty mariner.

539 According te iriformarit, KFCC cieariy falls within the ciefinition of 'enterprise' and is aisca in a 'dc>minant pasition' and that it has 'abused' its 'dominant position, whirgh is evicierit from the dQcur'nents prcivideci anti averments made under the 'in'i0rmatiori' and aciciitionai aftida\ii'ts iiied in course of proceestiings, Since KFCC is a '=per-son' (within the meaning of iawi and is engaged in the activity reiating to the distribution of goods iiiimsi and is also in cCmti'oi at the same to the iarger extent in the territ0r»,/ at iiarriataica, it is an 'eritermise' within the rrieanirig of the Act and is in a 'r:§ominant positicm' witiﬂri the n"ieeriing of E-«:rti=:3ri 5.51) D6 iias wroi'igi3r beta' in its regaert that KFCC riot an enterprise withiri the meenirig at Seitticm and t'riai; the DG Lmruacetssariixy s:r.m*ii:vii'ie»:i the ".

provisioris Cit" Secticin 4 v~.riti"i the pr«:>vi.~:i-carts Oi Sectimt Si, whit.:h ere twrj indeaendent arovisions with serarete 0i3iec'tive.. A::e:i;:>rdin7 to the in"fQi'mant, H .

the D6 has em:ii"ie<:>=.:si\_,:' aise SC)Li;'_.~.fi'i"-; *:r'> e>v::ciu..de defiriiticin mi' "Ent»er;3rise"'. Sir:-<::e i<.FC-C ~;?sti'aei' be 3 person it is covered by the pmvisions of Section ;1(h) of the Competition heats beh_sssasets"semEmriSee"~ 5.81 Ac.t:ording to the informant, where the person carries an commercial activity or net. is not a ciecidihg factor for the appiication of Competition Act. This is more so because the word "activity" has been given a very wide and an ihciusive definition in the expianation to section 2{h). Unix; exemption in Section 2{h) is that activity shouid he reiatabie to the sovereign ftinctieh of the Gevemment or the like. Admittediyithe activity of KFCC er simiiariy situated bodies is not an activity covered by the exemption under Section 2(h}, therefore, they are 'enterprise' for the purposes of Ccrsmpetitien Act, 2002. I 5.32 The iiwformation has aiso given cietaiis of iosses suffered by it due to the acts of KFCC. it has been submitted that the ii':fm'mant ccauid not ciistiiiatite the him "Kites;" in ah the theatres in the State of I<.ai'nataka due to the restrictions imposed by KFCC and thereby it was eeihpeiied to withdraw the tiim "'i<ites"

from <:>thei' mess theatres they were piahhihg to screen the fiim i":. The im'0rmai";t was abie te screen its fiim "'i{ites"' ohh: in 24 theatres i<az'i"izi'tai-ze. This had 3 iarge adverse impact an the revemies arising t'r<:sm e><pioitati«:»h of the him "'i<ites" Karhetaka. The ii':tei"mamt was tmetiie ta screen the him "i<ites'" on the first day of the reiease at this 'him due to iiiegs-ii marches and cihamas of the remeseiitatives 0*? i'-ILFCC. {lira ac«:r:>Lm't at such restriCt.iohs, the ini'ei"mant suh"ei"ec:i kiss to the extent «zit 5.83 iSimiiai'iy, it couic' not dis'trii;iu.'te the film "Raa\rai*i" { iiamiii in aii the theatres in the State of i<amatai<a Q? imp-:>ser;i by i<¥CLC and thereby the i:"':f{'Ji"i'i'1€;ii1'{ was ahie'\ 92 fiims "Raavan"' and "Reavanan" together oniy in 24 theatres in i<amatei<.a and t_h_gj'_ggby'__§_Eii,!_Sii"ig i_<_:iss_ to the piiespects and Gross irev.em.ie5 of b.Oii'i these films to the tune of Rs.96,0Q,DOU/~.

5.84 Acizerding to informant, the aforesaid 'iosses incurred by the iiitormarit can be substantiated cm the basis of its revenues for the fiim "%<ites", "R.aavan"

and "Raavanan" from the other states. in addition to the aforesaid, according to the informant, it has aiso sustained iegai costs/exiaeiises for initiating iegai actiion against i<.FCC for the iﬁiims/'Raavan"' and "i?.aavanen" and "Aas'nayein"

to the tune of Rs.SD,{31,917_/-- (Rupees fifty iaiith one thousand nine iiundred date and seventeen eniy), as on the of the affidevit.

I 5.85 in View of the aforesaid the informant has submitteci that it has incurred a totai ioss of Rs.3,7Ei,O1,917/-- {Rupees three crore seventy six iaitiis one tiieusand nine hiindrea' and seventeen only) fer the Films "Kites", "Raavan", "Raavanen" and "E-\ashayeiii" due to the ariti--«:Dm_eeti'tive practices un~::iei'tai<.en by the associations i":'iC}i'E perticuieriy KFCC. 5 'O3 6 The ini°-:>rms.=nts in No. 43' nd "£3 in -

3 a sense at praceedings and vide theii' si.i.tmiissiens dated i;7'.O1.2011, 2i3.'C%S_.'2U13. and C'2."'3.2*L,11 i'es:pet:ti\Ieiy whii:~3 e>:pi'essing their agi'«2ern«:.-nts with the tiswelings ei' C36 _, have ease i:i.e in the ease 25, «'1? that hag in stating; that KFCC and the t:«ti"iei" aS»S{)Cia'CiCiRS not 'Enter=,3ris"s' wi i' me' 'ti"i»:--2:'e"?i-:>i'e, ti'ie.\/ are not C'iC)i'i"1ii"iai'it per ;:ii'i::~vi. Afi « car 3

5. iletermination of issues E«.';i« Having gone "tiwough --'iFifUi'ma-iI§OH,-~-F{?§';>OF«t«S-- of-~sD+E-« andwsuiamsissions of \!3FiQi.if_': parties in these cases, the Commission notes 'chat foiiowing issues arise for deiermirzation in the cases under consideration; issuo.3_: 'vvhetheir KFCC and other associations are 'enterprise' within the meaning of section 2(h) of the Act and if the answer to 'this is in affirmative, can 'i.'i"iF3ii" acts and conciuct be said to be vioiative of prcsvisions of section 4 of the Act as has been aiieged by the in*iorman*: ? issue 2: \N'hether the mies and ieguiatioins, acts and conduct of» associations are subject matter of examination under section 3 of the Act? issue 3: 'Aihether various acts and conducts of associations are anti competitive as aiieged in the information in terms of ssection 3 (3) rea with section 3 {1} of We :i.a:t"r' ii: Has. "ms-, arsition of KFCC and other asisociations caused A5-preiziaizie I-xdx/erse on iC.or'i;::~etiv:iori the mai'i<s;i;'? issue lzkfifhetheer. i{i»"-i:'.Z~C". and ofnei' associantioris ,'{E:§'§"€F:§';3i"iSei meaning; of s=e.+:'§;i€m Z":{h} of the i"-Em': anti if the "cznswer to this thcsir actc condos? said to 'ma of the f-'aoi; has began by 'tho iz'ii'czi"rm"«:r'i'L' 6.2 The Commission csbserx/es that in order to deai with the afaresaiazi issue it WQg}g;;i Vbepertiriem first to have a jack at the defirmtiorx of 'enfcerpri,s;e' as given in section 2{h} of the .='3.c.'c. The said section reads as under; " {iv} "en€erprise" means a person or a department of the GDV€!'i7m'Eﬂif, 1 who air' which is, or baa been, engaged in any activity, nsicitin to the ':2 pmdaiction, "storage, supply, ciistributicin, acquisitibrz or corms! of czrticies or goods, or the provision of services, of any i<im:i, or in im:esi'mern', or in the business sf acquiring, holding, undem/riting ctr cieciiing with shares, debentures or other sesrurities of any other body c0rp0r0te_, either directly or through one or more of its units or divisions or subsidiaries, whether such unit or ciivisian or Subsidiarl is Iocafed at the same piace where i".h€-3 emferprise is located or at £1 dijfererif piece or at different places, but does mat inciude am: activity of the Gcivern.mer.vt i"ElUf£?:5i8 to the sovemzigrz furictiomg of the GOW3i'i7IT?E'l'2?f im:;"ua'ing air' a'ctiw'ties cmried on by the de,,Uor"€z:m=.-.r7£'5 of .i'i)s3 Cenfrai £3ove.r'm'm?nf e:2'ec:!i:7g wizvh zstc-rm':

5-,=7e.«"g,\«', .:7r_,sm<.'rvcy, defem:e cmd space.

Eispiancstioiv,--------Fm" five ;:i=.u',:3i:».:£e?s of this cim,.1.. =3 -»~ g':.:-T} "f2Ci:i'x.»'i1"y"' ir.>c!=..ide3 pm"':?s5 ton gr £7CCi.i,QC?i'iQi?,:

'17? "'c:.*"1':ici:?" iz7c:.I'*..r.9':'«:5 (1 new mficie rim} "::e3r\.u'ce" inciuak-:'5 :2' WW I se.rw'ce:

' =.;.': ..' :. ....,r .,,» -. ~~. .~ ~'--a ' {C} ijiiii or 'a.'.»»..»is:on ', I/"1 ,~'ti:',?§iL?n {J an c~i.«€e.->;.2H:~e, .= s"'..".-' (2 ,«*:»iari or }'3:?C'€o.'"v -53-"= :.f 3u,a_;:iiy,. Jisi:ri.*l":uti<,ir:, one is;

.1 //_.,",..;

(ii) any branch or office esiebiisheci fer the provision of any service,' 6-.3 ﬁneeCoi--mmeiss»ienA-e--i3s«ewese$na4i ea: -pemtine aiereisaxid ~Fi"--evisiensi,.v.te »eueiii.fyi~ Nae" en enterprise, it isjjreqeiied itiiat any persen or department of the Government is, or has been, engaged [in any activity, r'eia'ting in the pi'OdLiC'CiOi'i, sstorage, saippiy, _distribu'cian, acquisition or centre! of articies er goods, or the pievisien of services, of any kind, or in im/estmerit, or in the ' business of acquiring, heiding_. uncierw_i'i1:ing or deaiing with shares, debentures or other secwities of any ether body corperate, either directiy or tiirough ('me or more of its units or divisions cu" subsidiaries. in iight of the_afeiesaiLi previsions, can it be said 'tnai: KFCC or other asseciations named in the instant information quaiiﬁr is be caiied 'eniierprise'? Are 'these assecietions cantheiri own engaged in {any of the actiikities. mentioned in the sectieni' ' i

6.4 The Cemmission notes that the associations named as respencients in aii tnese cases, Cemprise of the members who are preeiuceirs, disiriijiiters of exhibitors. The associatiens themseives are net ;'3rc>ciuc:in,g Oi" distributing or exhibiting any iiim. Ti"4iE'E:€ aﬂivitiee are being peiic-rs'nei:i by their' cerisiituean:

me.mb-era who in 'min are the pi'~:3c'.uc,ei's, ~:iisi.i"ii'J*=.i*cc:r5 and E)=(i"':i§C:ii;Oi'S. C2:»:'npetii;i0n iaws seek to preveni: uni'aii' of or artificial meetien of mariaet iziower. To eeqiﬁre rnariiet §)C>\.'V{i'i' and to misuse that, eit'i'iei' ﬁrrns wiii «,:a"=.'i'-..= I 7 -1' . II I 1 I P : . I K -' -' | ans Loepezate or act i_ii':iiE}'C(-}.".:ii'g an ms.e;ieneem:',i. -Ji".C£'ai .3'€:€J.'.iOii 3 av ze A z'v'« ..»'.._¢ wniie Eigi"€'EZii'i{r3i"z"£S are e:.-:emined, under sec.tien ="' uniiaterai CD!".dLiCT :3'? the V;

iirrns {§ndi\.«'id'u.»3ii3I er as grr;up}.- whirgh are as maeiitioiieci in said :,ec.*:io.n.

6.5 in the instant matter, Ki-"CC or any Uth-er fiim association are not engaged in such activity. it is the ::ori5tituent member wim is 'ii'iCi'iVi_d§.,,i:c'i§i,}f engaged in oriepttiiibitioniof iiirrtsuanti not tine K.tiSiSC£C.iEi5TiOi'iS: ihe associati.r.ms are oniy proviciirig a piatfizarm to the constituent member's engaged in ecanomic activities and are regulating their affairs. it is possibie that some associatioris on thei__r own might be engaged in some activity as mentioned in section 2(h) and in that case their conduct wauid aisio beCDITit-'3 liable for examination under section it of the Act. However, in the instant cases, the asscciaticms are not engaged in any econcsmic avidity an their own.

Theretoi'e, the Commissim is of the view that in these cases, the associations do notquaiity to be 'enterprise'.

6.5 {Since the associations are not 'enterprise' in terms of section 2{h,i, their ccnducts exist: carmcrt be examined under' stzction ii at the Act since it is oriiy the conduct cvi an 'enterprise' or a group of eriterprise as defired in s-:«:titm 5 at the - ct, iwhich is subject mattar at e>::~m'iinaticm as appart-ant ﬁat':

't«*aoi'dii'1gs Cit 56:-zttioit Ki {1} \v'V:"iiCi'i state ttiat "i'~fi.:i rJ:7tt3:'pi'ise r:;-r g:'ou;) .s'.imf:' abtzse its tz'ar7*u"na.'.rt ;3c;r.~:i't.»"or'i".

I was Ccssttenijed by the: ir'ii'<.:rrn.:mt.~:

that siri«::~:~: i<i3CC other similar indies are an associatiori of iaersons or' a bC3d\_.r' of iiwtiivitiuais, 'ttie'~,»' are 'gtiersons' within the rrieanii"ig Gtsectit>n.2(i)Dt'ti1e st .\_..

arid sine:-: i<L;5C<... cittier azimiiar imaid to be =:=erso;'is, 'ti'2ey' are covered by the pE"C='~/iSiOi'iS 01' Section I-*i_i'a} of C...' 'ii --~ ' ' $93 since deiinitiori at ents-srprise «savers 21(1). The C-:>i'w'ii"riis:sit'm ieexis that as far '-JD

-'\4' informants are Concerned, there is no issue of disagreement. Ki-"CC and other associations are indeed persons within the rneaning of section 2(i}§ oftiie Act end persons are aiso inciudeo' in definition of enterprise. 5.8 However, it is not that aii the persons can aiso be said to be enterprise since section" Ziii} specifies cieariy that oniy those persons can be caiied as 'enterprise' who are engaged in some kind of activity as mentioned in section 2 h . Thus, wi'iiie aii enter rises are iersons it is not true that aii ersoris i i i3 i» A I P wouici also necessariiy be ei'i'i2E3i'i:)i'iS-E. The iegisiature has intended to distinguish between the two; otherwise there was no need of defining them separeteiy in the Act. The distiriction is more obvious when we read section 4 which taiks oniy' aiaout 'enterprise' and not a hereon". Since the provision' of section 4 envisages assessment of ciominanite or otherwise of an entity at a market piece, it is naturai that such an entity shouid have some market share, economic strength to enabie it to iiifiiience the competitive forces in the rnarket and only those entities wotsi-:3 have these which are engaged in some econ-:_nnii: or cornmereiai ei:ti\,/it\_r.

6.9 The Commission observes that what is iri~.'3orta-nt in t'"ii re-:{ai'c:i is to 3 C' U':

'v'rJi'.i3'{§".€i' these associations '~.1i»'hiC'i"iia'i'E indeed '-is per secti-"W , K go. sir» Z»3(i), eiso in any aCii\!i'i'g' in em! manrier as .ifirovi«:ied in seistion Ziiii oi the to be :23 iied 'enteri:irise.s'. 'i"i"se activity in e>:;:iiai'iatioi'i (a) to set ion . iiieeri given ii"i«:iiisi'~_re o'-eiinition to inciueiie» i3E'£i'i'<E?SSi£1i'i or occupation. The Conimissior; observes that i<i?{ZiZZ is Society R-egis /\ DJ :3 DJ r4' 51:-

7:."

£1) UV 0 E2 C) '=».ties Reg;istrati::>n. Act and it has about. 508 V3;

\.iliill ::on';pr: iris: of Procioters, Distribu'i'_<<:>rs, P='"""azies"it Exiii L3 CC Semi--Permanent Exhibitor Members. KFCC (and other asscrciatians 3350) are therefore the associations of fiirri producers, theatre owner-5 and di5trib_utc2rs and as per their submissiuns act as reguiatary body so far as proiriuction, distributiun and exhibition of films by their rm=3mb».2rs are curacerned. Then' are prO'\f§dihg piatforms to their membrarsr for various activities. They are not engaged in activity on their own which vyoufd assume the character of a profession D!' an occupation.

6.10 For exampie, as per Memorandum and .!~\rtici«2s of Association of KFCC, its main objectives, int-sr~a~iia are to encourage and promute the Fiim industry in the State of Karnataka and to work in conjunction with similar Association in india. It has also beer: submi ted by KFCC that its opinion is sought by the State and the Centrai Government in the matters of awards and other incideutai matters concerned with the film industry. it 3150 recommends the suitabte camtiida' as for app«3rintmt--2nt as members of Censor Cemmittee and aii the fiims ("F produced in Kannada ianguage are forwarcied through it to the Censor Board. 6.11 Cientraf Cir«:uit Cine .:3.ss*ciati<::r: §C«Z'CA} as per its ststzmiasicms aiso a r;ori«Ti'arjing Ccimpany under Section 2:": at the iiormaanies Act arid has been esta1i3iis.ht-:i fur attaiiwirtgg '=::i'ie -zfstsiect r U";

ms its ax.-*E~:~".rn*.t:2s';--2r'r .-um .3-&.::r;s{:aat::2r';. E:

has iaeen ?"'orrrred to-r furth€--rir:p the rr::mcn°.iu;"'z the ii'3dL£S'{I"* arm' as a > J Y z'egLiiatory body tcn discipime the «C-cmduct of its n'ien'i§:>€;=rs. E:-.;.:. Eaimiiaﬂgr, per' su33missic»r:5 i\»'iG'i§O?'i ?'*i.ctur;s r3..9<.ocia i'eg;iste~i"e3c} urrr:ier Se<:ticari 2,5 of the Cumpariie5 /i\<:t an I' avermt.-nts it is not «engaged in production, sL:;;ipiy, dist:

6.13 EWRPA and other easczciaticms named in the intormatian have 9.15:: stated that they are not carrying on any ,b_us§ne5_s agjtivity or trade in respect of fitrn or cinema.

6.14 The Commission observes that repiies of assoctatians, their Ev'3em<:::randum anditrttcies of Associatiorw, rutes and reguiati ns revea'; that they are not engaged in any a-ctivity of the nature, by xdrtue of whic.h they may be caiied 'e.nter'prise' within the meaning of section Zih} of the Act and therefore their acts and conducts are 35.50 not liabie for examinaticm under sectien 4 of the Act. However, due to the sheer fact that generaliy the esseciations on their own do net enggage "m the ccmmerciak activities, they do next become 'enterprise' te be examined under the rigours tin" section él of the Act. The case mag'! be different in cases. where the associatizms cm its own at in addttien to the member <:cmstituent:s are engaged in any activity menticmed in section 2(h) of the Act. Hawevet, in the cases under cons§c!es'eti«:m., stme no materiai has come ts) the E'%.G'3Z§CE that the téim bodies/asseciations are engaged in the t1u5'=..ness Di' ;;m:>t:5.t.:<:t%«3n, or c2>-:hH:~it'%o;"a or any ether cm"nmea"cia§ " z.*:<:*'~;'av§':'.'y retaténgg to these zza:t%vi't'tes, thet'e'§'<:«re they cezmet be ttermeclt as "ent.erprise' w§'t'n'm the meanirzg er' section Wh'; of the Art.

tssue 2:: Vt-'§"§E?".i"'t'c'E' the (vies and teguiaticms, acts :smc£ mrsetuct at a33:>cf3tE:3t'ss are SL£§3:i€éCi at e>;amis":et£e:m L£.t"i<'i'3'E' secticm 3 at the Act? 0':

.

/: ':1, .-'~.. , ..,. 1..".. .. ' ..,..\., .. .' .... '..., .tE me u._.»nm:;:mt.::: we: the-.. =:

whetiher 'the ane ti-'md1.:c._ e:»<am'mat%on unrier section the provisions of section 3(1), 3(3) and 3(4) of the Act. The provisions of these» ' Atwo sub--;ectEons are as under; ..}_~ (1) Ne e.mLe:'prf5e or cI55oc:'c:It:'on5 of enZ'erpr'ises or person or a55r3cI"at:'ons of persons shall enfer me any r:rgreemen.z' in respect of graduation , siuppiy, distribution, storage, acquisition or control of goods or provision af services;

which causes er is iikely to cause an appreciable adverse effect an eompet:'tio.32 within India.

(22 ~~~~~~~~ ~~ "(3) Any agreement enteere into between er7ter,rJr:'se5 or associafiens of enterprises or persens or associations of persons or between any pereon and enterprise or practice cefried on, or decis/'an taken by, any associcztion of enterprises or associefian of persons; inciudmg cartels, engaged in ic2'erm'cc:i or simiiar trade of goods or provision ofsewfces, whicl:--- {aj dz'recz'1y or inr;ff;'ecff}.: a'e'fermines purchase orscﬂe pricess; {in} fimiis or cczriimls ;3.»"eo'z,.sCﬂor'.r, s'up,rJly, n7ara'<:et5, :'e=ci'.=m'ml development, m\:e§?°fr:-';e:'2z" or ;:2rm/.»'si»:xr2 of sen.-'.ices,' A (J) shezreg the mc:2'l<et <:.r' sounte of ;3:'odL1etim or gave-vision sf 5erw'{:es L7},r way of crl:'o-:crn's:»;7 c2__.-*' _geog;':7;3f*n'cef crf r.>'zc2'r!'-.:=sf, or igype of gC;CI(s~' or or I {/9 ,'\ rzu.m.beI' of customers in me: m£2I'l<e1' or 5:57;; c.»i'f2e'.:' ::.5m:'}'(:n' way;

" '-'. « '.- "-,- ". ... H3'. '_ .' ' .' ', . " A' '4-.' . , £zz_rec::.z_;s -C»; !s!Q!f:'CI.';./ r45 «#5 1:: .£.»s-:3 rsggmg :7: co.*!L.:;:ve' idijl/r'.3'i'.}' slaaff be ;:Jre5L:me9.' m have an a;Jp:'ec?!ebIe c';o'*.rerse e=_'{,-'e~:tf an ztampetitf-:>_e..' n.. .'J,..: .2.' ....»J,-... - .,..», ~ - . '.

.~mw:.f:;:o mat ;,=u:.::s;:-J €,O::::C;'::.-'Sf;-' If'? Ems. ,,,,J ogs'een':enI eeterea' i:'2:U by ».v-way o_,~*'jeas'r..=€ x«'e>.r.:::w'::=:.: .z:.1c.v'3 effweiencv m !3f"CJdL.'C'C£OI'f, su:::;efv, d:s::,r'.«u':w_,si'zon. 5tc«.n:t:ue=, ' 2% a .- . - : 4' v - .' * H' . J \ . , _ _ 'x or ;:m:>\/mow of 5erwce_<., ';

n".

{J p...

Expiarmtion.-F0i" the purposes of this $ub~sectii:>n, "bid rigging" means any " agr'een?ent, between enterprises pr persons re_fer_r_i3d..,tc»__in S£.€..,~§EL'Cf5:Oﬂ (3) V engcilﬁileidi in iifentictii picwciuciibn fir bf giooi:i$ oi' of I services, which i705 the effect of eiiminciting or reduciieg competiﬁorv for bids or adversely affecting or manipuiatirig the ,*3r:3ces5}'<:>~r bidding ('4) Aivy agreement gmongst enter,nri::es mﬁpersons at different stages or ieveis of the production chain in a'ij'fei"en'£' mari<ei'5, in respect of production, Supply, distribuz'i0n, storage, sails or price sf, or tmde in _CjCi'Od5 or provision of services, ' inc."udfng-----

fa) tie--in arranigszment;

{bi exclusive supply czgreement {C} exciusive distribution og'reemeni?_:

(0') i'E'fU5{3fi to dew:

(8) rssais mice mairitemjmre, .9iiiaii he an cigreemem' in cciriiimveriviiczri of :;'Li?'.3~sc>;'r;':'iQi'2 (.1) if 5u£.';"3 ag.r'ei*er;'3&'r:i' C£3'L"S€$ er is iii<s3i;,.r came cm 0';L7rpi'<C-Ycfcibit-Z' c2dver'.se on competition in india :§)r,:3ia7imt'ion.---~Fc2i' itiic? f3i}.",E.3C?:§ES Gj:'L':*"?."5 SL.-'b*S€Ci'iG.!?_,*** {mi "'tie3~in ai'i'angie.-'-m'=nt" inciudes m':y agreeimrni .=*equi.r'ing 0. ,5;-Ji'::i'vczser c:_;r' goods, as 0 co:'io.'ition of such purcim5e=, purcimse 5-arm? C3iIi7£'.'" goodfs;

{'i;.i_} ":e-><ciu::ive> tiéifiijiﬁiy agi'eem=rent" ii7ciL.i.9':=35 m'.»_'~,s' ag.hr_--.=enwer:£' i'"='- . ~ 7 maimer zf.h:=? _1::Ui'cim.:~?er in the r;::=u:'s€ of :".>i:~,' i_';'':: i'':- :

:;'i'eciiing in any gsjmis O'Ii"n';?i' 1Li'?€.?i? r.*'7.«:_§e cf ifiie 38.7 ~* 1-'32 {c} "exclusive dism'but1'on c7grer3.m.:.=3nr" includes any' agreemem' to Ifmfl', _]'f§'_S'l'I'I'Cf or withlvolai the output er suppiy cf any goods or alfocate any area or r'ﬁa:".'<eiT,>'_c:r' thé dispésdl of sale goads; ' H {.1} ﬂwzfusral to deaf" mcfudes any agreement which resmbts, or L; fakely z-:3 res'tr1'r:zf_, by any me'£'hod the persons or cfasses of persons to whom goods are said ar from whom goods are fjougfn';

(.2) "re5ale price maintenance" inciazdes Lmy agteemenr to sefi gcods on concmion that the prices to be char"ged cm the resale by the purchaser simff be the prices stipulated by the seiier Lmiess it is ciearfy stated that prfces fewer than these prices may be charged.

.:

6.16 The Commission observes that the associations mentioned in the instant cases are awociation of enter;3riSes {c:ons*:itL:ent members) who in 'turn are engaged in produc*:'zon, distr'ibu':i«3:1 and exhibition of ﬁims. The Memarandum and Axrtécies of associations, ruies and reguiatians ;"e'f§ec"t: tha caiiective iwtent '-41 C} '?;2"1e menmer consti'we:'sts based upon which the Exsacsciatmaws 'take part§cuIa:' d-3r:is1Dns and carry on some c=:1mn'1»:m agreed ;:rr*'z:'t';»::es cm 'c»e%'a-ah? cat? the members" The associatians =:.ons%st sf indéxridéuais and firms with comrmn iwerests in 'trade, w%'1ir:§*. jcsin together it» *?=.w';her *che3.3r 5:Qmme:'::ia¥ or

-:'o'~,"essionai goais. The asso::%a=':':c>nt~. *?:*akr-3. d«9c;isign2 an behalf of the nm_=2m.'>:,-«:=rs member coswstitisezwiz.

6.17 The (Z«;m":mE:-530:': '=;'*.e:'efore 'maids that exien an 'emit-:erpri:;r:', since ?;§"$+3'y' "?;a':<:ing deciaézan' .« distribuﬁcm er emibition for ﬁche interest of the members» who are engagevd in simiiar or identicai business of production ef ﬁims or distribution or exhibition, pfactéiveee ;::arTried on, car' decisieesb by ehem .assoeietion of enterprises are c<;»vered within the scope of section 3(3).

6.18 The Commission aiso observes that in the casea uzjder consideratian there is no ver-ticai agreement bemnzheen aasecéaﬁens and any of informants in terms of provisions of section 3(4). The asseciatiens themselves are not engageei in activity of preduction or suppiy of any goods or service as part of production 'or supply chain in these eight cases under censideration. it is not that KFCC or any other assﬁczciaticm or the informants in the instant cases are dependent upon each other for production of fine? gacads or services' 6.19 The Commissien ac-cerdingiy hoicis that whiie acts and conduct cf the associations named in the cases as respozwdesits may be examined under.

section 3(3) of the Act, there $5 no case of ex minatéen under 'the gxrovisiens of s'--*s:%;ion 3(4), since '1;;he:'e me of xrzerticai ageememt in the case:

consideration, Lasee 3: 's:"z:'§"a«L--';5.T§°eEE3i' verﬁmzs eazis and cergefuctg aesmziatimws» ere am'-Li- mmgzaetitive eiieged in 'me irﬁcsrmatéen in termg us" seeizéan 3 $3)? 632?} The C.ommis5icm notes. ithat the 'am/estigation by DC} has 'Found a host of acts and :;:on»:xfut:'t par'? of 'u'E1F'i€JL..2S assacutiationg wh'u:h been ~::{.>r:sides"e':¥ eyzamme each of guch Enfrmgemems 13,; var?

D im'<3s'rnatic>n and as :'epez"i;e:;i 'my CNS in era' entire matter. The Commission aiso observes that the rnarket in which such anti~competitive activities are to be i<:,>oi<ed into is the mar%<et of distrii3ut:£0ri . "e;v.:i1"'-ittioii of iiirné iri 'than? urider thé of in India ta» find out whether any appr'ecEat3ie advei'se competition has been caused in sud'; a mar'i:e'r.

i. Restrictions in terms of deaiing with rm~n~members 6.21 The Commission notes that in the course of investigation, Déi has found that the Articies of s'-'issociation arid rules and reguiaticris framed by various associations named in the information prohibit membrzrs tram deaiing with norwnembers.

\ 6.2.2 The Ccxmmission observes that in this connection the repiies ﬂied in» course of investigatirsri and statemeswts of various. parties recorded by D6 wsuid «tietiniteiy suggest that 3ii'1E asscrciatirms dc: not permit their rriemberséto cieai with HC3iW"FTI{:':tT'i§Li+2i'S. This gets dear from 'ChE'-: foiiowing statements rer:c;rde«:i by D123 in CC}'i.i.E'S€ iiw&5i;iga'E:i0n:

» Statemeixt Shri §<;.isimi*e, .E~:2':rit f:?1e::r'et;ary, Cerstrai C§E"€t.,§i'C Cine .»'i--.$1$J(}C§'s:1'E§(.'sE'} £4.53 \/»'hetE"i-exr' (ii-3t:'i'r;»Li'tC>i' member of yaur a~3socia'tiQri can give '.9 picture to an e;~m.ii:»itc3:' who is amt a member? .21,sws.S txio, per our zzzrici deai 'wi'ti'i :'iori-:'riei*ni:»e:s' e>:hibit-3r. it he dt:>'e' ' cii:.Ci;:>ii:W.ar\,-' actir_m against him.

3) Statement csf Shri Vinodii. Lamba, General Secretary, MFA £15. ,.XK\il'lE}Il]Q.if al.dilstr.ib.umr memberl l0l7i.ylc3,ur lassncialticm can gj.ve.lhlis picture to an e;<i'iibil;or who is not yciui' mem.'ri»:-->r?

Ans. if a distributor member deals with an ezxhitiitor who is not cmr member (suspended), 'then action is initiated against him as per aijticle and rules of associatian which he has Lmdertaken at the time of seeking the men'ibei'ship itself.

(1.6 Can you explain from your article 03' association and rules that if a distiributor or exhibitor whcx has never opted 'y'Ol.li"' membership can be

-, allowed to deal with your membei'~disi;rilJLitor ---er»<hii3T:tor and vice versa? Ansf: We do not permit to deal with such non--i'nem3:3ers as per our article of association.

C) S'§",&'§El'i'lG3E'T:'lZ cs'? Siwiaasant Kumar Patii, $*':'Esi«nleri"i:, KFCC Q.-c'i \i'\fl1e%l"iei' 2: pi'oi:iuc.e5-',r"r:§i3i;i'il:1utoi' memi:>€~:i' ~,.-'<:»ui' assoi:ia"cion cam give his piz:';uz"e 'cc: a dismizvu:oi',«'i2><l'iibiior whci is riot yézwzr memiver? ;'-\r'.s.tl- As per rule 10 cal the i\!lems3i'amcli.im (ii Assaiciatiam 'ﬂE\1-[l'.{:3.A*\j_, $3 with i'mn--i'riember may e;*;l;i*aci: suspeiwsion. mil; to "égiie best Qf rm; imowledge, this provisiion has mi: been iinvoiued, D} Statemeni cs?' Séiwriﬁiian Base, i~"~°\;'§§. F'Ec'c=.is"-:-:5 L is; it n=?3ce:<5ai'\;' for every dis'-;i'il3uto;' ' i<arnatal<a Fain".

0ii§;i_'ribu'ti0:'i l\."l'y'SOl'E Tei'ri?:or'y? Ans.3 :/is a practice in ﬁim trade it is i'ec,"uireci to be member of the iocai film Ciiai'i'ibEi'S/EiSSCiCia"€iDi'\S to mrty cut distribution smoothly. Simiiariy, in Ni'/SDi'E territory, every distribi_itr:»r ought to be member of KFCC. E} Statement cf Sim Ekharampaiﬁtrara, NEMPA Q.r.'i-- Whethei" the Nii\/iPA aiiows its member distributmj/e><hibitor to do fiim distribution/exhibition business with nowmembers? An5.4 As per the rule 1f3{a;'i of our reguiations, the member distributor/exhibitor is not aliowed to deai with a ncn~membe:' distributor/exiwibitar.

6.23 The Commission further notes that in course at their submissﬁﬂns befcsre i 136, apart from i<FCC, CCCA, Niii/IPA and MP.-'ix, reiaresentatives of EHVIPA and BiiViPA have aiso admitted that as per the rules and regtiiatians of their aazsociations, the members {garoduceia distributms and exhibitors) Pat permitted to cieai with the m:»n--me~n1i3ers.

r'5.2:'i-- C.0mn'ii:.si«:»ri ii.«;it«2:s that as has i'e;?-<:i:°te-§ by £36 in 't'E"i'Ti'i} Qt' Para C' 'l3(\/ii) and (x) of Articies tit" /1\SSOCi:'."i',i'"Ji'i Gt' i'viP.£*~., iiieiiii , 4(5) smd 15 oi articies of association in of CCCA, Rtiii-": of mites i'egu.iatioris csf .. .' ' 2» 'I4' . . w 7 . _ i ._ ,3 V .,i 4-' : "

avg-iatratieii in Line Cvi BJ'i'»-'ii-.11., an-ti ztsieb and Qgieiaim isiatmg to 'V '- ciisputes as 5139:' the stat':-meat oi i'.«".i'. Bijaw iiiaivarii and ruie iii.) of bye cs ieiating ta of -'J':~:tz'ii3utic»i"i rights of iZii\fiPﬁ\ r"eaiii'ig with nc.>n~ mt-=mbei'3 are restris:ted,';3:'oi'iitiited by these assor.:iat~' Associatitiri KFCC gtipuiate i_i'ia't -deaiing w'i*"*' \.:: :' '.

3,0?

suspension. Article 18 of Articlises of association in case of B,ii'viP/A contains a Clause which stipulates that a member can be suspended if hefshe deals With nori--mernhei's or with ihemhers under suspension. if-'article 15 of articles of association of CCCA also stipulates gnrovisiohs for suspension from membership. These facts have also been confirmed by FiCCi Multiplex Association of indie in its subrriissions wherein it has been brought out that a producer, distributor or e1~<hibitor who does not become a member of the regional associations is prohibited from doing business in that partici,iiar territory. These associations issue lE"iC'€€:i'S/i'iO'£iCES to ail their registered members urging them not to do carry on business with or transact with new members, 6.25 The Commission on the basis of aforesaid deserves that riiies arid regulations of KFCC, CCCA, BJMPA, EiiviPA,Nli\/EPA and i\/iPA as weli as their conduct establishes that tliey prohiisit their memi3ei's from tieaiiiig with rioo~ memtiers.

The Commission also observes that the association' l' wave submitted that if their rriemi3ei*sl'iips are voluntary. l~iowever, no ;:ii'oo'or.:er, distributor or e>::hii3i":os' can }3'l'EiC'IlC?3ll'y' Conoltict it»usis"iess ii": the territories eo=::troi of various associations unless they l:iec.ome members of respective assozziations. The Commission has also tal<eri note of the '{'act l:>rougi'it to its notice that in a member deals with a l'iC3-H--l'i'i*.'-3.i'i'ibf:';'l', either he is 5JSl.%€l'id€"l, }}t3iiEilE:E3~": oi associations, uniess one is ready to face various consequences iike suspension or boycott.

E$.2.'?" The Commission observes that althotsgh it may not be i'.Zi3i'i'ii_')LiiSC}!'y' to become member of the associations as has been contended by the associations, however, the restrictive oroxrisions of the ruies 'framed by the associations of not permitting their members to deai with a non~member_, makes it manciatorx; for every distributor and exhibitor' to take their rneminerships, if he want-s to conduct business with the members of the associations. That the membership of the Associetiions is eompuisory to carry on the fiim business in the State of i<arnatai<a is evident from ietter dated 14.08.2010 written iuy KFCC to Ni/s Pai enterprises, in which it is specificaiiy I' rnentioned that a non--memi::er prociucer cannot release tiims in the territories under the controi of the association. in this regard, repiies rem ix/ii'. B.i-i.Basha, prop. of Baher Enterprises before D6 is aiso reievant inwhich it has been sobmit'i:eo' that it is necessary for the iiim distributors to become a member of <Zi~*C«" to do 'eiisiness of iiim e'.is*I_rii:>ution in i'{Eii"ii'c'~;'i§€:li<i€:1. "i'h<:« statements of fixiay Chandrii of Pei Eiiterjorises .3n»::1 i\!ii'.i i3,i\Ji.i'~é.esg:r'aAia Rex The.etr'e before EH3 eiso c:oni"irr-n the same position, 6.28 The statement of Shri Arizn iv'iehra ii. :;i'i+'>~.iiri1 ivi-;>\rii-za.' distributor in i 2 ' the territories of Biiiar', J'nei'i<heno', Assam, Cirissa, We-:.'i; Bengai, i\/iysoi'e and P.ejasth.en i:.iei'or»:-2 DG is also in El':-'i"iiCi'i it has been as Lii'iC5.~'4*:"i Statement of Si"iri :'3.i"U£i'i iViei'ira_. pi-'op, cs"?}"'iLir"z'i Moxri xv} " QB Whei:i'ier it is C.orm:'»L.=if:aoi"i,r for rziistri C'o.i'i"' mE?i'r'ib€1' Oi:

K \ \

-.

association to CEii'i"y' out the iiim "ii:sti'2=..t. ' a feat." 15' er territory?

Ans.8 Yes. it is rnancietory for a dis.rribu3:c:>r to become a member of a icicai assaociation prior to comimencenient of business in the respective '::erritor'y. (1.9 Vi/hat are the ccnaequences of not beceming member of such association?

An:2.9 in such a case the association informs exhibitors and asks iihern not to screen the film of the non--fiirn distr'ibu'toa','faiiir2g which a penaity wouid ievied on aii such exhibitors screening the film reieased by the said new mernber. The e:~<hibi'tor.9 air-so may be biackiisreci by the assaciaition. Thus, practicaiiy, no distribution business can be conciucted in any r.erritory witimiit membersiiip of the iocai ass«;>cia=:ion."

€3.29 Mr. Rajiv Kherina , 'a thezrrre owner in Medhya Pradesh in his repiy before DB has aise ccxnﬁrmeci that deaiing with narwnernbers attracts nr;:>i:ices. 01' Warnings as weii as imposition of penalty.

6.30 The C~::»mmis$ior: observes that since members of the as:-0c'iations--r:an'ied in para 6.25 aizove r:.-ennnt deai with rUn--mernbea's and are ;3ermiiz:.ci,sisieci;iisteai/E::a3rcei.red ins" so, it 'rsecrtsrnes zn.e:':ria;<:ii"gr for '* ;:irodr,.=r:e=:, distrib=.ii:€.sr or E'.><i"iiiT.lE'i.{3F' to beccrme m-ernber ::;:mc'I=.:i:"r.: business. ~ Pa 9' ' :1 w '-\ H 'L '0 --'~ .~+o« +' WT 'v "C ' -""i "V ~;~ v-we +-' c . The ~...Urri.r::s.o;c,n er. ~..ms i-Vgcnd ciibﬂ n\};x_.:: Lnd: -.2»; zidq LOML. Liﬁgezi ,_.re.. 1.h1_ «zonduci; of We a:;:aociai;inris in deaiing oniy wi'ti'i rnembers 'tn 3 si'ruatir>n of reiusei rsieai xrvitiw nr;>n--me.rni3er5 in violation sectieri Brit?) or 'he Act. I i ri-<W{;'V€i'_, =';c;mmissi<:>n r:ii:>serv~:~3:« r.na.'r CDi":CiLiSiOﬂ3 drawn by D6 in this . ,,... ., .. .2.-. e. 4"' iegnrci are not c.c»ire-L,:.i. irie sefusai to \.j{3§:c}f-1;. >iOi'2E of Si;'LI.lCJﬂ 3:54-3

(e) w-Quid invoive agreement betweerz the gnigim, 0*? p:'C>€iu=:iiiCm er 5'» \ V. pp=y chain. in in5tan'»;

there is no business deaiing between associations and iiOi'}"i":'iEiTii3ei'S. in fact, the business transactions are between the members of associations and entities hiioini--ih1ierriii;:ei's, Theite no cese oiwa imiiertieei between two entities ihvoiveci in these cases --~ entity which is 3 member of the association and an entity which is a nommemberr, stipuiatirig that the said memiaer or nommemioer Cannot engage in i'.i';;'3i'}SE£CiZiOi"i with some third entity. The Commission observes that the rules and reguietions of KFCC, MPA, Eiix/iPA, i\iiiV'iPA, CCCA, BJMPA refie.r;t the izoiieittive behavior of eii the members comprising of producers, ciistributoi's and e><hii3itors by which deaiing with nowmembers who are their comgzietitors in the business of 'production, distribution and exhibitior; are prohibiteci. in effect, the non- members who are the competitors of the members of the association are prevented from competing eiiectiveixg in the market. This coiiective intent and behavior of the members of the associations which find rei""i=~:-:c'-cion in the ruies and reguiatiohs of the association and decision of the association in a vvay is an aggveemem at hoi"i.zentai of the :"':a'L'Ui'€:' ;;ii'ovi::ied in se-"ti«;n ?'{3',= oi' 1 \ 4»-

Jtsst. .-'--xL;'{,.

... \, J The agi'ei:~3meht emorig the rri:eh'ii:it~:i's acted iipon throu.'.'.h de<.:isic_m and ,ora:ctit:e cerrieo' or: by the associations, hot to with non- members ,io «eff-;-:=.t.t iimits sLzp;3iies ciiSti'i5oL2itioi'i the iiims in the tei'i'itories uncier ttoritroi of veri-:>os associations which is vioiative of g:ir-ovisiohs of section 3i3)(i'3',i of the societions C. The Commission notes timt ii'=vr=.s'tig~;;--iti«:ai'i by s' r"!-

I \ i': '. r . ._.

Chamber of Comrnerce and Chennai Kanchipurarnilriiruvaliur District Film Distributors. have made it mandatory for the distributors and producers to get each ainrl every fiirn registerscll iriiitii their sssotisirioris. have pi'OVlSiOi'iS in their bi,re--iaws and rules regarding registraitiari of every film. A I producer/ciistribLiror has to get registered his fiirri with each association separately. For the purpose Di' reg'istra'r.i»:3n of a film, the producer«distribui:{)r has it} fiii a prescribed proforrria called. "A::quirirag Form", 'Wl"iiCl"l COﬁl'.ali'l,S certain terms and coriditic-ris. Each produr:er~cii5tributar is bound to abide by such rules, 6.3:? in case any film is released wirhbut registraticm. discipiiriary action is initiated against the producer» riistributdr of that film. if a riim is riot registered with the associations of a distribution circuit, where it is released, 'the 'el><liibit.m's riarmaily refrain 'from screening the film in their theatres in fear of penalty or S'L.lS}3Ei'iSlOi"i. i'iie_ CO'i'Ri'i"ilSSlDl"l not:-as shat in case of film, 'Tasvir' produceci by Percept Films wiiicjii was released in April 2810 Wl'i.l'lCii.J'i r«.=sgisi;ra'rir_m in ah»:-3 ar's=3.as urirler time cr3i":i;:'ol Di i;€'i";ii"r3l Clirrzuit firs ; , /--l<sor:ia1'icm., discigniiriary action was initiated against irlwe distribiircir. Similailg, letters G2.ii6.2Ci1iJ- issued by Eli'».«'i"i«',A \z'ar'ious e><i'iii:.i'ir:srs uni; it. 6.35 The sraterneirts (if E.i-i.Eiasl"aa (ii ivifs Enr;e:'i3:"ises, Ajay i"iianr"ni m' compuisory to register the fiim before release in a particuiai' territory or circuit under the coritroi of respective association. This position aiso gets t;onfirme,d :?;u_ii'i1 the statements of reor'eseritati\i'es of MPA, Niiifi PA, CCCA recordeci by DC:

in course of irivestigatiori proceedirigs.

6.36 The Commission aiso notes that the producers and distributors are aiso forced to accept conditions at thr-v'3' time of registration of fiims with the members of the associations. As for instance, Eros internationals Media Ltd.

was forced to ac.c.ept comiitions as regards time of reiease of fiims in media other than thoatres at the time of fiiiing prodw:ei"s--distributors joint appiicatiori,/agreement dated 12,0£i.2010for registration of its fiim "'Housefuii"

with {vi/sh Shree Shreshta Fiim, a member of B3iv'iPA, even when it was not wiiiing to do so. Eros interriationai was aiso 'forced to accept the oiiiiigations imposed by B3i\/IPA restricting the broiadc:as'i:ing and teieicasting of the fiim through Doorciarshari, DTH or any other sateiiite network for .3 period of five years from date of premier release in 'the country. 6.3"? Eros intei'na'tio.raai was aiso 5-2si<ed not to seii cabie "W, vi-ciao CD 3-ind digitai I video disc. rights of the said §3iC'EUi'€f for in Nepai iridia, i:'=arigiao'e5h and i~'ai<iistari for 3 r"einTarnom ggaericsdsof six months. A ::.os'i::iiti«::-ra was aiso irnposeo' that the pi'oduCer,:'i;iie hoider wiii not reiease the tiim cii:*eci;ii,.r in the Home Video circuit arid shaii not ei"Fer:'t or muse effect cieiivery of video caszsette for not 3:iei'oi'e txwci waei~:s from thré: 0' firsit thoa-trie:aE r=:=ie€.=se in th-r--' cour'atr~,r. 'i'h€-: Ccmmissior notes that these c;om'.iitioris arr' imp-:3~ L aii Cases the time oi" i'egista'atioi1 of fiims. Ti"-:2 Commissi. ;.

th facts on ="~3cor»;i that ti"i..r_--*_ asso=:.5»*-rtioraz' ai' (1) prc:dur:ers,r'disiributr.irs of fiirn fer sertierrient of claims cf the member distributors by refusing to register their fiims in their areas of contrei. 6.38 Ruies 1%, 5(3) of the ruies for iregistraiion ir'. case of Eaiii/iPA, Ruie 22 iii' i\iiMPA as per statement of sim Diiarmapai Arora, Ruie 4 and 5(3), read with 8 and 9 of CCCA as regards registra'i:i0ri, make regis'rra'rior1 of fiim rzempuisory iaefore reiease in 'me territaries under the coritroi of these associations. Similariy, as repar'ree;i by D6, rule 160) of Articies of Association of ix/iPA aise stipuiar.es that no member cm' the Association siiaii dis'tribLzte,'su;:>piy and/or screen any picture unless it is registered with the Associamxn. As per ruies and reguiatioris for acquisition of diS't1'ibi.itiC)i'i, exhibition and expiciitation rights (if iMPi§A, members are required to register the fiim 'isfitii the asseciaticm. As, regards EIMPA as per submissions oi' Mr. Bijoy Kaiyani before D6 and as per rule 35 of bye iaws reiatingios registration and deregistration of distribution 1 rights, it is nested 'met Eii\/WA also makes ii': mandatory to get films registered with itseii. The ruies aise prescribe that if army unregistered fiim is screened, periaity sriaii be imposeci iiurrher, iristarices have aise been izsiased en record as brought ~:«Lir. in 6.35 aiwve suggest timer a r'iir-rs is nei: regis"rereri wi'ti"i it, riie si'ia=re ex' =:iis'r:'ibut<;~i"s is not in case of i~iFCC' , 'there are rie ruies merrr.ioi'ied in the i'viemGi*eridurn or' Asseciaricin reiatiiig 'L0 re;_'s'tra.tion of iiirr \,.

. -,_5,.-:§ i... J V A §:)i r:'__«-[.1 3:35.' »- L' I (D eistretiisn vriiich his 'as be in "W L.i:.¢::'ibi.:t:i.rs £1' \-Jy accenipanieci wiigii the aU'iIi'\Qi"iZ&'."tiOH by }3'!'Ot'.'iL,ECi?3i" aiong with a fees or' Rs.2UD«'--. and S'€.i;:iLiiai'i~Oi'1S irameU by 'L'r'ierri cm the issue oi' corripgi' § sayirig *:.'i'iat regiistratiiqm is riecess ta prcptect irrigere » \ in producer members so that the producers may not i3'1dL1ige in the muitipie gale/distribution of films and aiso to im"orm the distributor and exhibitor membérs"'%5f'Ehe' eiiésoiciéition of tiara are assigned to a particular distributor and no other member or' association may oieai with the said produce:-r. it has aiso been stateci that registration of a fiirri ensures arbi':rai;ion by the association if requir'ed, to settie disputes be'-cweeii prociuizers and a distributor member of the associaifiori. 6i.4£J The Commission, however, oiziserves that by making it compulsory not to deai with the nommerrabers and also makirig it compuisory to register a fiim before reiease in a particular territory, 'the associations keep a compiete conizroi over the business affairs of the producers , rjistributors arid exhibitors Rboth members and noriurriembers. in such a case, a nommember producer» distributor of association, whose film is mm: i*e;gi5'é;ei'ed with a pariticuiar association and who is not a mernber, Carma': c:om:ii.i<:<t its business in the territory under controi of 'Una': aszociatiorr 6x11 The Corramissiori iwoiris 'ti'iai; 'ti ese '3c'I;s of iii?-'€IiC,. i'*«.Eifx/E PA, Fiiv PA, ii\«'iPD.A, i3.iiViP.f--X,CCC.3x, i\»"ii«'*.£'« iimi'i' "the sup;;=iies of ﬁ§m_. in €Tii'i:i:|3i'{3i7i: *;ers"ii<:+i'ie3 r:or1iravi=3i'i<.§. ithe §'.'ei'U\!iSiiZ>i"-.5 of section '%{3){i3} oi' the Ti'ir--:~ Commission iioicis that these ar:"i.:s are ari':i-corri;;io%:i':ive airirze tiiey restrici: r:orr:;:=eti':iori i.:»ei;weei':

members and nc)rm'ierribei"s.

iii. i%estric*tio»ri imgizoseoi or: mimirser of for a;+:i'ii£:«§tiorz of rim":-regionai iiims pai'i:icLiiar' "ce:rriioi'gr.

6.632 The Commi:~sioi'i oi:«sEer'vos 'L"i"::'.'L' resTti'ic.i';iCm <:.s»n riui":'ii::~e rcegioriai fiims is anoigiier iz"i:3'Um£'+;> of ami-comgnetitive ' a'~;:sr:.«:iatioi-is has been i'E'\i'EE.ii€Fi iffy' iji"i'E Wi§"i'»-'f~3Sik.i§-;F'.««'i.i'C3*i'i of L G \_, \ 6.43 The Commissiori, however, notes from the report -of investigation that no specific instance or provision in the byeiaws of associations except for KFCC as regards number of prints whi<::h can be s.(:re;--3ened in a particuiar territory, has been found by EEG.

6.44 The Commission oiiserves 'that KFCC has made certain norms for release of non-Kannada 'Fiirns in the territories under their control. it had adopted a poiicy to release» non~Karmada fiims in 21 theatres in Mysore "territory 13 single screens, 4 muitipiexes in Bangaiore city and 4 theatres outside Bangaiore city. Vide Setter' dated 28,{J5.2D1D, to M/5 VPVR Cinemas and M,"s.

'Goidie Films by KFCC it was informed that the association had decided to aiiow three more screens in imiitipiexes in Bangaiore provided the distribufors under take to adhere to the stipuiations of the association. The conterit of the letter is as U§'1d€i'2--

"' Sub: Screereirzg of other iangsurage fiims.

]> an pet' 'the rm 5 of K5 r H. at? 1* Fiim Chamber of C.omm~aa'r:e, =:.»'r.her iangua_:3=a fiirris are to be released i 21 'dir.~2ai".ros oriiy i.e., 3.3 singie screen + 6-1 i"viLii'i'i=,3ie:»:€;=s in Bang:-siore cm' and Ii i';rieati'es outside Barigaioi'e c.i'ty'. A»tcor.ciiz1gi\,', dis'i;rii3i_n'_ors were irifoimed to adhere s¥*ri«:ti\,.' |""r o the :.bos.re n,or'.ms wt in vioiate "die same under am; circoms'tai'iCes. f.?»is.*«_'rii::Lii';oi's. w£--7re aiso :"oo;uested to ':'Ui'i"x!Ei'. the detaiisr of t'oez-sire. {wi?:i'i riames } in wiiirgh ihey are reieasirz "T rower' iangLzage fiirhs weii in advance.

ixicnw, the E><er;=.stive Coiri:'nirte~e of Chamitwr as'io'i'.hei' 3 more 3-:r«.=3 X =ri~.~. in muitipie>::es in Eania (r s /"I,/1»-69!-vv:.».,_,_' '37:;

....... \ distributor's undertake to adhere to the stipulations mentierieci in para (1) supra and make a written request to the Chamber."

6.45 The Commiission cibserves that this reveals that as rm date raoniianriada fiim can be released -zzmiy in 2.4 screens as apposed tr: a Kannada "film which can be reieesed in 200 cinemas in areas uncler the coritroi of KFCC. For Bangalore City, out of 20 screens, 7 are to be in multiplexers and balance 13 in single screen cinemas. While reciuc:tio.ri in number of multiplexes and corresponding increase in sirigie theatres is permissible, it is riot aiiowed otiu-2i'wise. The fact that there is a restriction irriposeti by KFCC on number of theatres in which nan Kannada fiims can be released is aisci clear from the ietter dated 1?" May, 201D vide witicia the informant in case Ne. 25 had requested KFCC te permit it to release the film 'Kites' in avtiditienai five thEai;l'eS. This is alsci clear from 'the letters dated 21" lvlay, 2010 and 22"" May 2010 to KFCC vicie which the said irriormant had informed that it \NDLilCi exhibits films only in the trleatres pern'ii'tT_ed by the eeseciaticms, i5,¢i6 The Cmrsmissiori also that as per Stipulaticzins oi KFCC, in case at i"I'iLii'{ipl€-).>{ES, the 'iiims are to be re-ieased izmiy in one screen and erilgi 5 Show ') .. .,.' _ . .3 '- V.' ' ''.,--. ..,' '..., "--. ; .--,'-- ',-'Lo, '.-_ - __ - .-,»-i,l~ L353 be E':CLC>mii"lf3d?.Z='iE:'Li ti': 9. may. it rue; misc El 5tmsi.:«.1,.--,i:i twat fl iiiii".--i-- "'i"z:ir.1Ci' in I r '\ fiims Cari be releaseei in eii cinemas -:mi\g C.C}m;?iel;iC'>i'l of twe weeks. i"rQrri the date at prerriier in the crmteitt oi release of films, 'Raa\/an" iiiinciii and 'Reevarieri' iiemiii the irriormem iieel reqi.iested te co' " 'er that these rzommon TTiUit§f.'3i'EX chain. However, MFCC did not agree for the same and as a resuit the informant was compeiied to fiie information before the Comrriistsioh, 6.4-7 Thef~;- Corm'nission fur*.:her notes that Fiim 8: Teievisicsn Producers. Céigsiid of India {FTPGl) in their reply to D6 has aiso conﬁrmed that i<'FCC imposes restrirmcms on the number cf theatreé in the 'rerritaries. under their control. FTPGi had' alga regisrereci a pi'ote;t with Fiim Federatimh. of india vide its ietter dated 84"' Jrine, 2010 against the manner cf' re5'£ri<:tiDh imposed by KFCC' on reiease of non-Kannada ﬁims. FTPGi had also informed FFi wide the said ieiiter that if the reatrictioh on number of srzreens for'rion Kannada Films is not revoked, the producers of non Kannada fiims wii! have no recourse other than iegai rules iiice icnocicirig on the doors of Commission. «S.-3-8 The Commissirm aisc observes thar FTPCA had written to KFCC wide ietter dated 11"' June 201.0 can its ps:::iicy of rceiease of other iénguage fiims in iViysr3i'e 'tei'i'itDi*y, in repiy, i<ZI~"CC vide ietter dated 18" 'tune 2010 had reitczrated iits st:-mci as urider:~ H in H 1*' "

C '.E'i' to sa'feguard iriteresr er' i<a.hnada Fiim iria'L:str\,.', i:<ama'tai<a Film Chamhrar 3:" Corrimercge, after a *:horo'u:_-Lgh r;i':Scu:~;sic>n wiih ah 'the members he C'.i'iarriber', made. ztertaira norm:~. far reiease or' rrgher i'iims. in w'i*:ici'i 51?

re fr;»ii0'~.I~..-'2:

3} Other ianguagge i'iim=;3 tr; tr:-3 a"eiiez.a:+e;-' in 13 sirigie screens 4: '?i'v'i!..ii"ri;3ir3:«<es in 28 *-giweatres in Bzamgaio 'A Ba:'igaim'r3 c:ii;'yA E3' 3 C') Ciriiv S shczvws izari be cl) The Disti'ibutor is at iljerty to release other language films after completion of two weeks from the date of premier release.

la} ln case of Billrxgueil 'films, the norms stipulated in para 1 will lye applicablie irrespective of number of languages."

6.419 The Commission also notes that KFCC had isoued a letter dated O8.l)'7.201O to M/s Big Pictures and all multiplexes lrzforming them that in a"

meeting held on the same date following points were requested by KFCC for the implementation by all;

1. in all multiplexes l<ermada film should give first priority and Kannada movies screenecl compulsory.

\

2. Multiplex screening Kannada movies Shouldn't be removed till collections are good.

3. At any czost i*mi'lti;:sle>:es exhibiting Kannada movies shoulti give prior ootice to the pi'odu::e.s" and CllS'fl'll'3U"'C~Oi' before .3to;'»;3ing the scl'eening, and time acliedtile of new l<am"ie-Lia movies shc:-ulifl be given to the ;':~rorjuo_2:* s:listi'Ei:-utoi' 3 days prior' notice.

4, As. the €.o:"'w:llf:loris of _,.e EQFCC, e>:l":li3it<:::rs; play riistriioutoz' sha:'e amount within week after liigl'iei' bill.

e. As pea" mesent policy one movie should sczreers one ':;£:reen lastly.

- .__ _,.

$2.35 ll'-.'€-J 'F ooawwrzlsasioaw also obsew-zas that on ..'é=.ll3,l __ c.:-th-er notice. the ow:"«el's of l\Jl--=.sltip.lex Cinemas amt: oii'e>:.'?;.eci tl'ies"n to ll'l'li3lEl"l.'l€.'l'il the i'oElow'm ' l i. First p.r'eferi3nce isfmil be given to KC2i"if}(1d{1 fiims in Muitipiex Cinema " Hails and they shcrii be £'xi'7fbited compiiisoriﬁ/, {Iii of Ciiaei:-m iifciiiﬁ siﬁeiii cormrwe to exi2i'biz' {big ifannada film iii! the coiieciiori towcmjs the srjme are good. iii. ifcinimda movie simii not ,F&'I?'10\ftE'C!' frzzxm 'the Muitipiex Cinema Hails withciu;§ bringing it in zfhe notice-of the -zamcerrzeci pi'oc:'u.:er and distributor.

iv. One film shah' be i'esti'ic€"ed to one .<;ci'een oriiy. 6.51 On Juiy 22, 2010, KFCC wrote a ietter ta M,/s Gaidie Fiims in respect 01' reieasie of the Hindi ianguage film "KHATTA i\f1EE'l'HA' appreciating that the exhibitcir was e>:h§bi'ting ﬁims as per norms of KFCC. 6.52 The Commission observes t'na't the aforesaid evidetwces estabiish rzleariy that KFCC hasimpcised resti'ict§o:'1s on number of screens for eriahibizticarz of now Kannada films in i:errit0--ries under cantroi and e><:hi§:>Emr5: are supposed 'U3 r'c~iiQw me dmtaites of the assc-::Ea>:;§on on the iasue. The (Zommi5s.iGr'2 mxite.-3 ?..'!'13'': the KFCC has jusizified its staswd saying thai:

the z'esti'icté«:ss"1 on mi';--§=ianna:_§a fiiim has been im;3o3e=:i in 0269:' in ;:emn":=.::t.e regionai Karmacia F-ihens, i+"§owe.=.xie:~:':'j, 'i,:h-22 Cemmissicm :::>'b.:'.<2:"\:<.-2,c_. that the g3ir'efe1'ez'=.ce to a gsaﬂzicuﬁaz' fiim left ici -'J:-'3!"sS-L!§"mE3§'§= in the mas'i<~3t. The resmction an mwbes" of screi-3115s impoazed in ce.r'ta'u :Q\g'i\-_<E*:s by KFCC in \ the of ;3z'e::>a'n::=tion E2-':"i{.§ §;1i'='_'.?":I<.'.-'.'{".1*.§Ci':'1 C23' §<;'av.':;"z;«;.«ﬁ 5 ;au:'>< i*es":s"':r;"{aori and impedes <:\:=m§;:a»s:"t%':ie:;i'e in 'me z"n;~;<:'i<e3 :

the indian Corm3eti':§on Act.

120

6.54 The Cc>mm§s.s§on hcaids that the above action of KFCC arises out of agreement among the members at the association which gets teﬂected in decision or practice carried on by KFCC and results into limit on suppiy Qt ﬁirns in the market which is vioie 'we of section 3(3}{t1) of the Act. The Commssion aiso feels that such :'esttict§cm is diccriminatory against the ncmwegienai films as the directive to tefeese the non-Nantnada 'films in iimited screens wouid certainty have an adverse impact on the ptoceezﬁs out at the e>./.pEoi'tation cm' the hon--Kahnada ﬁtms in the territcaries reguiated by KFCCZ. Further, the Cemmissien aise ﬁnds force in the arguments of the imﬁarmants that if a non-

Kannada ﬁim is permitted to released in Kar'natat<a two weeks after its release in the other film territorieg it wiiil aciverseiy affect the ihterest of the producereciistributors since the curiosity to watch the ﬁim mu he lost after two weeks of reiease. In effect, the hon»t(aametia ﬁims wili not be ebte to comtjete etfectiveiy in the market due to the abcsve dictates 01" KFCC. W. Resttictttm regarding unfair heidbactt peried fer emtteéteticm csf .sete§§ite, Wctecr, EZi*7E'H am either' ﬁghts .15 The C<;>mn'2ission csbserves that aggociatiens named tn the istfcn'rt1e"ic:n .. L :'egistretio.h tcerm er the ac-:.;uir'mg ':"::>rm Qt' e$seciat'z<:»n5 itseti; ccmtaihs these tyy:-e -at cene'itiens.. if the p:'~:escs'ibed ccme'i't:%or:ss "P" not :21 L. st.aec§eti«:an5 ret"u.=3e to register tiizhs. The §n'~..»'es';' teveaiecé that Ei.'.MW=.., s"»..»':P.!1x and CCCA have Essued sex S ..V '3. --\ .. ,r.. . .- » ' ...f I.' 7 '. . ' ;,;:'C:CtLJL.»S.':; uh ptematme w-zieese Q: aims on E.'/E!H.?,t *1 The investigation by DG hes aisca revealed that iviPA, CCCA, Nli\/lP;f*<, BJMPA and li\/IPDA are i°c:>t'cing the producers to accept the terms and comzlitioris relating to the release of a film on sateilite/television,/video before registraticm of films in their respective territoi'ies.

6.56 MFA has imposed conditions that a film will not be seeeried on satellite/DTH before six months frem the date of premier release in the country and also that vicleo/CD rights will not be given befere 'Ewe weeks from the theatrical release of the film in the country. 6.57 CCCA has prescribed conditions that a film on satelli*=:e/ DTH will not be ecreenevd Akbefere one year from the date of premier reiease in the country. Similarly, Video/CD riglits wili not be sold before months irem the tiieatrical release 01' the film in the country. The lm'c;«rmant has also drawn aﬁention towards the fact that in case :3)' breech Of this cenditien, ;3i'C3dUCEI' would be compelled to clisﬁibufze emengsl: the r;lEsi:i'ibLi'i'oi's_, 50% of the inceme/re3li:~.e'tier'i3 en the basis of prevalent reelizalzle .r'e*:§e woule' retain eril\,r' 50% wiﬁi 'ghemseixies in eccowzlance vmh the E3Qi't":'i3¥"P€!'i'§ lneizween .é».,l.F.P.{Z lv':Liml;3ai_, F.M.C. l'v"iL3I'i"ll3E:§ and CCCA lixhusewel dated 1i~E3"'.iz.me, 2308. A +L' ¥, .a z.» . A f ~ '*~51 H r L.. 9 H (.,J' r' ( .

LD Lillf. ei'.eL.: semen -an .41 lime, 3Ll.€}'\Jl(:} iry "Kil ineie z-'*""' "

2 . .4 .- ..- r' .-.-J1 1.... .

nn:r§G¢UuEu:e3UHLHim3 DTH met before five 'years ii"-cam the (late cit' premi ~. 5 on selling 'i/'ii:lecc/Ci) s'igi'.:s 'net be:"=::i.-'e size; mcm'tl'i.s. *' the 'ill in in can :'itr'~,/.

6.59 As has been l'€;'JDi'ieC'l by DG as per the registration form of i'«lii\JlP;f\, it is mandatory to uridertalre for producers~distriebu'cors 'that the film cannot be releasaed on sa£telli*Le,"rele\/ision before expiry of one year. Similarly, it imposes r'e:'strictions on selling video/CD rigrits before two wee'.-<5 from the theatrical release of the film in the <:o=.zni:i'y. ilvlPD.£\ also direvcts its members to obtain uricierteking from the producers to refrain from teleiztiasting ﬁlm througli satellite, terrestrial or television /cable exploitation either directly or indirectly for a period of six months from the date of 'liheafcricai release. 6.60 The Clormnissioin also notes that the lnformanl: has produced evidences which support that these associations impose unfair holdback restricfci 'exploitation of Sateliite, Video, DTH and other riglitshlof a film for a ceriiain period from the date of theatrical release of the film. it is eviderii: from letter dated 5"' May, 2010 adolreesed by Filmkraft Produc'cions lriclia Pvt, Ltd. to the lridian l'\/lotion Picture" Distriburors Association, in which it has been unoier'i:al<eri trier the film 'Kites' will not be exploited througi': satellite, or television, <1'ireC=:i'y iociii'ec'i;iy ror =,3«:ee"ior_'i of moriitris from the CEXEELE of Uieetrirzal re oi"'l:he film.

S.iE§'.'i Similar unoeri.ai<irv2-giver: E33! Filmi=:i'ai"r §~"rr;"§ui;'=;iori5 irioféa Fwt. to x/io';icm PiC'cLss"c~3 4-'~',.s.soc:iai:i<:m,. l\lortl'ierri iriclia l\z'ic>ti<:.»n PlCi'ui'es Association, Easiterri lnclia iv'lo'tiori i3i-stores Assciciaticin and Bilwar arid Jhai'l<liand Motion I F. V P lC.l.l.li'{~;' If)

1.

I I :E«(.'»{ilE}lZlGl"; the ect the it will , film ax/an' »:~:><eCu.i'e.d azizriiiar uriderta VJ;

(ms for exploitation of video, sateiiite arid cable rights informing il\/IPDA about the same, has also been brought to the notice.

The Commission observes that several other iristEmces,x'eviderices have eiso been produced/submitted by the informarits to soioport their views in this regarci. A ietter dated 5"" August, 2010 was issued by the Motion Pictures Association to 'Reliance Big Pictures' in the matte'r of the reiease of theltiim "Raavan" on Stiﬁ' July, 2018 on media other than cinemas i.e. before the expiry of the period stipulated by i\/lotion Pictures Associations. Further a copy of ietter dated 2"" August, 2010, was also issued by the Motion Pictures Association, Delhi and Uttar Pradesh to 'Fiimi<raft procloctions (lridia) Pvt, Ltd.' "For the release of the film "i<ites" on 3Qth.iL1i'y', 2010 on other media ie. before the e>»:piry of the period stipuiateti by i\/iotion Pictures Association in its form. Similarly, fetter dated 10"' AL:gost., 203.0 was aiso issued by the Bihar 9 U4 Jhari<haoo' i\/iotiori Picture Association to 'Filmi-weft orodoctioris {indie} l-'-'Vt. Ltd.' for the release of the fiim "i~'iites" before the expiry of the period stipulated by the .~'5\Sf~,Oi'.§i' D4 tiori in its 'ic.»rm. in this letter, Bihar 8,2. J:hei"i<h,:.rio iviotiori Picture fxssocietiora also 'threeter'sed the "'i-'iimlz;r'e.i't Plroidoctions i'ioo'ia'i Pvt' Ltcii." with the ct.soseoiJ.erw:es of aenaitv and imoosine on them \ 4 1 J - ---« ...'.~n tom deaiing with .3i'i',f of their memi;1er 5.63 The Commission notes that associations have in their -:ie'ierice stated that these zgorsditioris from .~ ' 4*-ci hetwee r: the hfiai<ers" Combine, the apex body of Fiim Producer 1Si£33~fi ece:c_>i"cime' to Miich the ii» ' years. Llmtler the agreement dated 1Q.O6.1'E3'94, i:>D'th the producers and distributors agreed to give a gap of 5 years for showing the film through salcelllitel/television from the date of theatrical s'eleaseAl'Tlcrli'e>Ag.:ap in eerlori laetween theatrical release release on :sa*:eiiite;'television is prescribed so as to 5ai'eguard the i'lght_s of (:liS5Tl'lbLll:Ol'S and e><:hil:>itors with huge financiial stake.

6.64 The Commissicm observes. "ma": the arguments of the oppasite parties on the issue do not appear ta be appropriate. 'Tire Cammission 'observes that rmw--a--days due to advent of 'teclmclogv a long held bani»: period ceuld pe:~temia§ly prevent' a prcicfucer--distributer from reccrvering his costs and cause losses since if the explcmitaticm of film over other pilatforms is deferred for such an urijustified period, the 'film would lase its ccmmercial value. i\low--a--day5 many producers are also clistribuizlng the ﬁlms. Sum decisions should best be left ta 'the cenncemed parties; as any decision in this regard by the Association would be i'es'tri<:i'i\re EL?

ncl am;i--cornpetEtive.

6.65 The commissicm, Cm the basis cm' afcxrezialci lrcelds tlwat the aferesai-3' CDi"zClUC'5; of §\flP.~'3,. C.CC.f--\, i?IliVlP;"-1, i-lli\AP.~'i., Elli-"vl'PA arc} ilk-'lPD»'~\ leading to I 4 T ('i ,. ..

«-.

F r ..

Q :3 L) in ,.

7:3 piles of filrnss. -or'; media stiller" 1:l":r5n *:.he:~:':re.=s limits tine: marker. of di5*:e'El3u'tic:«n and e>:plcsitaticm 0l'f1=lm:~:, whicri is \/ialsitive of the ps'c>\risli:>ns of 'if. irr'i§1~~:.>s;i:*;g gzeerialties, cm filrrsa, Esscse of call :2? l:3»»;3='y'cm't; and withrroléinig slrxerre :3? c>§i:«:tr'ibut<:s.i°s Tile COl'i"lmlSSiOi'l r;«:»te5 trxai; in to discipline exhibitors and aiso impose a ban on fiims if their dictates are not foiiowed. DC; has reported such activities on part of KFCC, TWP!-\., CCCA, BJMPA, Eii'«!iPA., and NIMPA.

6.67 The Commission notes that D6 has pointed out specific ciauses in articies of assuciatian which gives pawers to KFCC to discipline the members, viz; ciause reiatirig to suspensicin of membership (clause No.1{))"vide which a iember may be Si.lSf.}{~3i"'idiEd from the membership by the Exeitutive Committee if he deals with a noiwhernher or with mt-zmbers under suspension and fails to corhpiy with the resoiuticm and/or directions of the committee in respect of business conduct, dispute, awards, ciause reiatirig to removai & expuision fram membership -(ciause N0. 11) and ciauée relating ta pciwers of the corniiiittee to appoint, suspend and cii5miss aii temporary or permanent saiaried empioyees of the izhamber and to decide their service conditions, to warn, reprimand, fine, suspend, expel or citherwise periaiize any m=ember after giving him at ieasi: seven days ncitice {clause no. 14). Further, ciauise iii'), 36 f.'.Oi'iCEi'i"ii_i'ig °:if-- JR Pi.egui.a~';icm Comi'r'iit':ee which i"6'.'£_:',i,iia3T=8S lrhe: ci:i:"ii:iu.i_:x of the iTiEiTii?+E'.i'S who directiy or inciirr::cti\,i xiiioieite pr cdriizravehe the ;'1a"C)'v'iSiOE'i$ of the Sei'i-Reixiiaiiori Code i°m'rm.iiated by the Executixie <'.'Lommi'tiee imrh time 'ta iirrie to render' i'iiri'ise!f iiahie iZ£> discipiinary action im:iLir3'i=rg SUS§..".H}3DSi{)i'i has aisa beer:

TDU.'"iCi i"':3ST.i'iC':i'«a'€' ii": i".9.'CL3'9,i The 'l:Qi'i'ii'T'.i'SSiC*§": HO'-7.23 ':.i'ia't the a'ic~:'eisaid mixes have the pcitsrhtiai to punish the mem'pers who not abide 'mi 1:i"n.c>.

want its COi'i'ipEiZE in the mai'i<i3t1: with their iiims a 3€i"'S. Ii ':

6.69 The Commission observes from reitorris that the Hindi ianguage fiim "i<ites" which was distributeci worldwide by the informant was intended to be reieased in 4% screens in iiarnataka as against the ciirectives of KFCC whi-:i1 permitted a ncm~i<annada fiim ta be reieased on 2.1 cinemas oniy.

CQi'iS€qUE2i}i;i',:', KFCC banned line s<:ree'nirig of the said fiirn in the state of i<iarnatak_a anti issued instructions to aii cinema theatre owners not to screen the fiim.

6.70 On May 28, 2,010, KFCC. vide a Notice to disitributors instructed them to aiiiziw the membera of the inferman': 'ca reiease norwegionai 'fiims only in 26-"; theanes in the State of Karriataira, ie, 3.3 singie screens + 'J Muitipiexes in Bangaiore city and 4 theatres ouitside Bangainre city. The iriistributors. were directed notrto violate the said Netice under any circumstances and were asked to furnish the cietaiis of theatres {with names in which 'these nam- regionai ':"'iims wouid be reieased weii in advance. The C9.T'iT':miSSiOi'i ncrtes r. at the film 'Kites' was banned sinee it was exhibiteiri in 46 screens instead of 21

- was ais-:1 cii:~:i'LipT;ed i::3.«' the rrernberaé ni i<FCC and print 4 C were seized The Coanmission notes trier various E'i€:'*WS paper regacrwts e'ia"i;ei:i 215* viay, 301E) aiso imziicaie the sc".ree:'iii-ig of iiim 'i<i%:es' was disixnateci since i":'i{')\»'i€- was reieased in mere im;'rii3ei" Ui "Liieatres than fixed as per the ni;::~ri.rs er ML.

ad.) .-:: 'lrn"-rxrrr-.:\:'i'r an/3 l\x )'ll\-/IlIllu(l(Ia V|'\-R i '"1 {1} 5.1 U1

-'fa \.n.rii:hdraw the 'iiim 'Kites' r'rr.>m the Cinema raiis.

5.71 The Clornmirssirm rintes such a«:t'a<:.>ns nc;-r. oniy 2-.=i:1iver5ej'i_s,: ii'Ti;{3'&i?C3i§:\1:\i"ii?

market, but 331.2363 frie U§"OdLiCei'S and di5':ribu'irJi"s who are xwiii-in dig-3' ' s .

4145/ ,,,, and e><hii;\i': :"nr;\./ies in more '=:iiari sripiiiaterji nurni;ier oi" t'nr«'"'t' ..l'»' i ""Ivv1:/1:t/ "

////;I/ the Cemrnission has aise t:i<eh note of submiasiczn of ihior'mant in case no. 25 in which it has been broitgght out that such restrictions had an adverse impact an the revenues arising fr«:.~m expioitation at him 'Kites' in tiarrsatake, due to which it suffered a loss to the extent of F-3.4.2.30 Crete.

6.72 Evtdehces have aiso been prcsduceci before the Commission which shows that KFCC cenciucted a meeting of its members of 16.05.2010 and informea the exhibitors that not to exhibtt the titm 'Raawah" or any other ﬁim produced by the informant.

6.73 The Cemmissioh also notes that in the event a distributor is ccmstdered ta have violated the norms of KFCC pertaihing to release of the film in more l than the stipuiated number of theatres, KFCC directs the exhibiters/theatre owners 'ED withheid payments to the distributors. KFCC either restrems the rjistri't3Lztm' frorn getting his share or pena~ii2e;s the e><hibit0z't/theatr.e ewher by ensuring that he dees net get any tahguage tiirn fer smeening in the future. For instance, through Eetter dated jxuiy 2010 addressed to ah the muE'ti;31e><es in E$a.hgaiQs'e, t<FCC Ceiied upeh the exhihi'tC;r3,."tim_e'tre D\P»'!'}E:'S to withhoid the share ametmt in respect at the 'riim, ''1 Hate Luv S'torys"' (co--produced by the 'aht"<:«rma'nt with Dharrha Preduct':cm.s and reieased by ME:-. ;3\t:r=;':i'v':«tme;:) !<h'aght and Day reiee."ed by M/:1. Fox S"t.ar Studio, an Engiish izangtuagre him, tmtii further rmytice from KFCC, as the. t:iistrii3txt«3rs at these t'iims had aiiegszeiiv » ' \.--''a0Ea'¢;ed the norrhs of i<f.FC.C. E3 . I it Th t the sh:~;re emotmts of dtEtfi§3t1tOtSfDi"»fiQia.'EiD:'1_ 'v-.1 :3.) norms withheid is evident from the ietter dated O2.£}8.2O:§lA_ were éesuect t<:» the mutti'-,:sEe><es E'sanga{«:>re to wi't%' films ) i hate iove storys and ii} i<Znigh'c {ii Day. Further, KFCC issued anather 'site? en ¥'we«*»9'i 4I..2'Q;1:Qr #0 air' the '.7.'.L1'§i?3P"3'A"'3I3 in i8an?aaie%'e asking them so withhold the share amount in the movies i hate iove smrvs' and 'i<i*iiGH"T' .i'-'ND DAY' on the ground that the Prssducer/Distributms had aiiegeijiy vioiated the norms of KFCC while reieasing the fiims. ' 6.75 The Conwrnissiorr aiso notes that KFCC Liaise imposes bans on cinema theatres for vioiationof its Harms. For instance, vide ietter dated 02.08.2013 KFCC requested M/s. Pei Enterprises and ether distribLstc>rs to step supply of Kannada Fiims to Big Cinemas, one of the group concerns of the informants in case nos. 25, 45 and 47. in the Better it was conveyed: that since there was some contmversy between KFCC aria' Big Cinemas, the Chamber had taken a decision not to cooperate wiizh Big Cinemas tilt the chfferences were settied. KFCC vide its letter dated 06.08.2010 had aisa instructed M/s Pei Enterprises not 'to reieese the 'fiim 'THE E>{PENDAi?.i.ES' in Big Cinemas. KFCC has aisc issued circuiar dated U7.C18.201{}in iocai newspapers in i<erri.a"cai<a, ceiiing urwn eii disti'ii:>L2+u:~rs, g3i'o=ji_2cea"s and -:--:a><hi'r:»ii;ers to mi 3:0 su;;~,:>or'«: the Big Cinema and ether' reiated group crsmperiies and mm ta terry em Cinema reieted transaction witiw them, in this r'egai'd, the Corrrmissirm eiso votes 'chat ;'1.ur=.'i ix/mxiiez had written a ie'ti_er dated 13,G8,20',ii3- 'co i~'IiFCC stating t.he'r restrictirpns Di"; e><,i'sibitioris in r:'iL.i3*ri;:>ie>r;es they corissimed es ii'i'iFi?'agE:'Yfi'3i1iiL ex' CDf'rzp€:i;ii5{}i'1 Ar:.i.i. i~io~.»~.re'~.:er', i<':'CC did not cc:gs'iizam'..e :3'? i:i'ic-3 same and ccm':im.zed issue <:iire£:iiives er" en'icsrr:ii"eg has rig:-rim J i n-cm'. * »sL,s,=:apiy fiims to Cinemas. From the ietiter it is 0* rzeieased by a garoducer whe $5 not a member cannot be reieased in Kamataka and therefore prints of the? fiims have been seized from BN3 Cinemaxs. The éetter aiso ::.h'ows that irssta'ucticm5 have been issued to :.hs2a%;res to withhoki the share amount and aiso the Prints. The content of the Setter is reproduced as uncier:

H we are in reatsipf of yaw e--rnaH aimed 13"' August 2010 wherein you had fnformecs' rm ii' is your obﬁgatiori to supply print to Big Cinenms. Fgrther, you have informed that the fifm was released by the ,r3r0c:a'uz:er c:2'ire:::riy from £~3ombr.7y to Big Cinemas, The said pmducer is not Q mernber' of }<F£.'C. A Non' member of ICFCC cannot reiease fflms in Kamamica. .» 1 ) Under the Cirurrristarrces, we are forced to sefze the prim" from Big Cinemas. Farmer we ":(:H/E also i35uec.:' instrucfions ta other theaters in witfmofd the ;»:hare mm:-uni and afso fhe print' '.1'! Hence, we rec;IuesT;' you !«:.r'nd!y to mm? the above pzzimts arsd co~0;3erate an/mu'? I-:1' FCC.

The <ZI€m.'*.s"=':E5sEc.m aésa :':o'tes a =:i*-**e:~:;i 14.1I38.I£.{}'.'LCI was .C:1.-

" ' 2': it-:3 wi'€;§'xhQE' as weié :93 'E_'i':e E"-'z'in%;2; 0'5' ':i"w.e:~:.-L "é'$ms whérih "W ' , .--i ' V. ., (.2. _. z |., ..: i'r:.'=.1 H1 "

'fLm;hr;:,=' instructians from WECC.

6.78 Evidence has been placed in form of e-malt eommtmlcatians dated 24"' Qt Al.lVgLl.S't, lrt wljieh it liaetb-ee,n Stated that in iresipect ef film '/lashayeizt' to be released and clistrlbutettl by Rellence A Big Entertainment Pvt. Ltd.(lm'armant in case 310.25), the exhibitor had retuged ta exhltzit the mid film because of cat! of boycott given by KFCC in respect of Big Cinemas and its other rela'ted companies. The e--mail alas shows that R.eliar1«:e~Wedia cqultzl not release movies in week preceding 24"' August, 2010 including the film "l_afengev Pariindex/l' because of the boycott called by KFCC. A letter dated 16.08.2010 issued by KFCC to Yash Raj films not to release the said ﬁtm has also been placed on record.

' 6.79 An email dated 20.08.2010 from Bijan Base of PVR Cinemas to Shri ieewan mshi, Deepek Sharma , Kamal Gianchandani and Pralsharjoshl has also been brought to lwtice in which it has been mentioned that the print of l;\ll{)HU ll\i§DHU would mat be supplied to Cinema The emails also Sl'lC3W that Ajay Films and \»"er:l~:atesh Recicly had Ell':"EiE3Cl\{ ken a de«::%s%«:»n net to Sl..1»,".':§L'=l\,/ movées. to G:':'3U.p became-e of the {tall l'.>c:3,rcott given by KFCC F' u.

' -, ,2 2: 's5l«..,. V. 5 , '_';s '.1 .t ~45-4' ee:::.lt'3 l e'.ts:_.. f 'J0 the Cf'>Tl"'H «m l 0 5101-" We Cf"F'Al '4: 'im ' EC?" let at 3g 5: t picture ".£\r§eane .»'~\:';jaem of l'\f=;'s. Er-as ls':tes'natio.nal Ltd. cm 1.8.G'9.201U, into -';'tmttet:t ﬁlms Lmtél em? u:*.lt~:;,s the film w"z:; regiistwed "'CC*"~ "aha ietttt =95;-*2 mentioned that the said picture was not ellgibie $33" registration due to pencllrg settlement <:la'sms m' dlstrllsuter memljes'. t«:2m"irjen*-;lal letter members dated we "I-'mjaana Anjaani" 0'L'hez"~mse a penalty of Rs. '3 Cl

4.,' ~a'u%t'mg memlsex'. E;'amllari\,s lette=' A 15.10.2010 against fiim "»'-\ction Repiaw' produced by \JipueiAmrLitiai Shah Under the banner of Bio<:i<bu5ter Movie Entertainers Miimbai saying that the picture was not eiigibie for regisfration in "FVaveii.:i' 'of xiviariit settiemem of pending ciaims. hi the ietter dated 15.10.2010 issued to aii exhibitm' members, it was stated 'that ruie 5(3) of Ruies. for registration of a picturtga sitipuiates that the pictui'e shouid be registered in favour of distributors for Centrai Province, Centrei india and Rajastiian prim' to entering into agreement and /or e><hibitor of the piCtI_1t"e_, eise fer vieietien of the said miss, it attracts penalty Cr? upte R51 iaiiii previded '.r7«:>r Lmcier Rruie 23(ai. A ieoic at the Rule 23 and 24 or' rules of registra"i'ion 03" CCCA wouid cieariy reveai "that the asseciation enjoys a pewer of ciiscipiiriing its members in order to einforce its restrictive and an';i--c<:;mpetitive conciuct. V' 6.81 The Cemmissian aiso notes that C£ZCAi1a=:~. aiso been fcsund issuing caution ietteers against pi'<:>dueers for the cieim on eccciunt of {:i:'ema'r,r.ire teiecast ef fiims on satei'iii:e 'seievision. in {he ie'i:':ei' dated 10.33.2010 wi"ii:i:en to Ems ini:emai:i<::nai Media i3.itd, it has been mentioned that as per agreemeiit dated 1'Ei.i3Ei.2£i1G emered inte by CCC!-x e.n~;i .€iii3PC, no g;ii'0o'su-::ei' 'tr;-> hi:'s 'I ;:>ir:mre oi': D~'f>Oi"OE3i'Si"xBi'i :3: any sateiiiie ci'zam«ei prior to .r_:ompieti0r'; L-'F Oi":E 3 :'i"<:>m 'i;hr~3i date {if ~:C.'i'i53.':>T.i';i'i'_§E.'-1: The pi*0i?iuc.e:'s were ciis'»:--.4-;'ied vicie *-chis ietter to setzie The ciaim in iespeijt of prematLii"e ieieceisi of i'(ambai<i'i't iSi'iO,, Lov Kai, Veer and kiamastey London c>'ti'ies"wi.<;e me i'os'thC.0ming iaictme gamdueed i.3i'~_,r i"n=:~:nri sfneii be eiiigiiriie 'f0i' i"egis't.i'a'{i::»i'i. ("P CO in) L in E'€S:ii'iC°L'iQi"i5 on "mi-;=_i"r'ii:»ei"':'. i'i:s-we aiao been iai'-3uf"

CZD:':'i:i'iis3i::ti:'z. Fm ii'isli"_enc..e, i~fsP:'-'«. issued a Cii'CUi3i' C'_ { member to refrain from dealing with the film, 'ten»:lon Dreams' .E.inCB M/'5 Kapur Films l'ia;'d filed their el_ai.m for the .l"€3C.§3'_s.lf:3W of an amount of Rs.2.:33,8?',O83/e against the garoclucers emsl distributors oi' the aeid film. The Cen'm'iis5ie:»n further' notes that l\/IPA has also been found te have issuecl the letters at caution against the producers for violation of eonditioris rela'ting to setellite/'lelevision broaclcast. Under rule 42 of the Articles of Associaticm, there are provisions which give power to take action against such members, who are iiwelvecl in violation er' the rules of l\rlPA through whir:l'i it controls the film distributlien business. Penalties are else imposeti 'for premature telecast of a film on Television by the associaticm. For instance, claims were imposed en Eros lnternaticznal l\/ledia Limited on aecotmt: tit premature telecast of various pictures vide their letter dated 10.03.2010.

6.82» The Commission 'further' notes that Eil\»'iPf«\ wide its letter dated 02.06.2018 had given directives not to release the share at distributors in Case of the film ([3 'P:"i.n.c ctr? Persia', simte the film mtit witl"i the !:Ul"fl':El"_, l\lll\»'l:9i'l. tag: else issues' letters to ttie ;3reC§u<;ez's cit film '.zi'»Cticii'i '9 i=.e:3la3r "

threatening 'ti'iei':"i t::> settle the claim etlietwise the film me'i,.»' not be s'e'~*i3tere'i. Bihat and }hari<l"iai'id i\«"io'tir,m Pirgimtte fit-:s:rcia'tioi'i (B.ilxflP.£3.), D6 has reported that its Articles of A550-ciatioi'i =.'_article18} canteins a tzleuse which sti;:sLi.la'i;es 'the-i't: a mei'i'ii:ier can stispencied if lie/site cleals; with ricm--l'riei'i'it:ie2"s er \.-v'i?..l'i memi::»ei*s l.li'i€.li?l' SLlC~.;';'Bl"lSlD!7, Spiecitic instances'-.» ' D6 ll" N.» 'I O C m' TE) (3

-+--.

<2 (D L» r'+v r"."' 3 "C :5 C':

(D D. 3 LT?-1 U'! "4 vi.

2'3"

V3 '3"

Ca'?

3..

1'3 <1 3P ii" been 1 \ § producers and distributors. BJMPA had issued a stroxnl cause dated 03.06.'.>_'009 for exhibiting the film 'Heroes' on Star P305. on 24.TL'_)5.»2:01_i3 against the unde:'te:kEng bf not reieasing the movie within the sttpuiated gseried on television and aiso imposed penalties upon Eros International Media by letter dated 12.10.2009 of an emount <:>f Rs. 4, 00,000.00 for teiecastirrg the ﬁlm 'Heroes' on sateilite charme§s.

6.85 Since the rm?-armant did not pay the penalty' timpased by BJMPA therefore, a Caution/circuiar dated 31.10.2009 was issued by BJMPA cautiorairrg ail its distributor members net to dea! with Ems interrmaticmai Media. Informant has aiso brought «nut evidences that Show cause Letters dated 27.06.2008, 30.06.2008, 11.08.2008, 28.01.2009 and 17.02.2009; orders imposing perwajty dated 26.02.2008, 09.09.2008, 05.03.2009; and caution/circulars dated 30.04.2008, 28.02.2009were essueci and passed against the informant by BJMPA in respect of earrre ether '.?i§ms.. A Show cause ncwtice dated 10.08.2010 was aiso issued in reiation to ﬁim "Veer", Housefuw' and "Pati'=.shaia" sirree it was sh..C.»wr"-. er teieairisieafas arr c3is'r".er'er'zt drates againzst "i.1§'1€~:-

stipuieted conditieeu: The instarrce 'J7 perraitﬁes imposed ':3\,r 8..§¥x/IPA gathered by 06 in course at iswestigatéen in ~.!arir.>'-.22 t:»:as-;:>.~: as.'s.:n«§e.r:

ii} LETV :3<:>f°r.\.»var'e Corz'rmLm§ca"-zirm Rs. '"- irai-:h tor Siluritnaan H {ii} Eros ¥\.»"au!ti~«n'red§a R5. xi', ta}-ch fez' Heroes {iii} Eros §§'rt{2E'!":E3'{§§O£'1E3i* Media Ltd. (Ev) Eros inter:'ratic.xr:ai F~J'3ec.iia §-ta:%.

{V} Eros §n':emati0:".a¥ Media Lt-:1', wi) Fri rr:i=::'a 'ft Prod L! i'_"JC-2"?

. ...................................... ..

(vii) ShriAsl1tavinayal< Cine Vision Rs. 4 lalali for Blue

(viii) Dharma Proclucizicm Rs. 5 laid": for My Name is Khan {is/; U"l"\/' Softwa:'e Rs, 2 lair}: for l'»/lain Aux" ll./lrs. l<I,if:ar';l'3a 6.86 The Commission observes tlial' Bil»/WA had also asked its members to refuse :0 deal with dlstributars by refusing to register their film"-as happeneci in the case of film "'Guzaarish' and 'the film 'House Full' unless terms ant} condltians were agreed upon. A caution letter dated 01.09.2010 was also issued against UTV Saftware Communicaticms in res;3e£:'l: of the film "'\Ne Are Family" of which UTV was the title lnalcler. A caution list pulnlished by the association Respondent in tl1efo:'tnig'in*.ly B 84 J. M.P.A Film Bulletin Le. Val, Neill published an 15th Septenwism, 2010, wherein the name of Mr. Ronnie Screwval.a, the Managing Direcmr of the lnfmman't, has been published and a penalizy of Rs. 5,U0,0lC>€)/« Rmsees Five Lac rnnlyl was imposed an tl"lE.'. lnfhrmaniz for satellite exhibition 0}' the ﬁlm "l<Ln'baan"' ifnereinafiter referred in as "Sal" Li Fllm"} 9:": ' V; " .-. ,---. r' "' r- - '»--,--.\.f'.&...s.- no.4': .., ;.... , . .'-, _.,.'_ H. . ' _ atellnts: i:.no~nn»:.ls {_lT:f':E'l;:c<!=.:il li:z{'3l,l»3-.13 Lu' as l.h£% s.:a.d. <,autlo.z:

L. orcler to discipline its ;"nen'xi:sers lam-sses monetary! §?3€f'=>'l*Clf~' :. ' list also warns all the meml3e:'5 Cu' '€l"H.-E .»'.associa'*;lQn no': to with lnform»3n*i;.

156'. cf clisclp-lin.r3z'3,«' action and :'egLnatlr;vns.

5.88 The Commissions on the basis cf aforesaid ebserves 'tiiat the associations --

i<FCC,_ MFA, CCCA, Bii\/ii?'A,A Eiik/iF'A and i\iWii§A by issuing ;au'i_iQij ie'i::ei's, sbew causes, imposing ;;sei'iai'i:ies and banning films, oiiscipiine its members and through siich disciplining acts enforces restrictiens and perpetrates" anti» competitive acts and conduct at the m.ari<ei: piece. The associations aiso are engagedm giving a caii of coiiective i3oyCO'i:i; if 'the riorms prescribed by them are not foiiewed, \A./iiich in effeci: means denial of effective competition as aii the competitors are not aiicawed to crampete with each 0'-:i1«ai' at the market place. The associations iike 8.ii\/WA and CLCCA aiso impose a condition that the members have to Choose arbitratian of the choice of association, thereby making them abide by ruies and regulations of the asseciaticm and depriving them the choice of ai'i3itrator'ti:> reseive disputes. 6.89 The Commission hoids irhai. such acts and cenciuct cf erifercing their norms heip the associations in maintaining the mai'i<e't power of the membeis and denies the i'iOn--membei's or the deviant members. who dc: net ieiiew their ..

z-ind wi"=r;> do iristen-0'. 33:» be cm' such a3":'Ci~COE'i'ii;s€Ei'[i'J€ ads ccmd.z.ic'=:, the -:;ppei*'?;ui':ity ':0 c<:iiTi*:.>e'ce. This i'E3:3Li§'ES mm iimit on sh-..ip=,3i:y and D. [77 '-"i?.*,>Li:;ioi"i of 'fiims iii the mai"=<:e*~; to the cietz"imen*: iii' the coiwsesigir' and aiso the cxmsumers, an act xr-¢h.i«:i'i in <:s:mti'averi'ti<:.»n '">s'«;wisio**'.s of issue Ne. E3: Has a«::':';i:m KFEZC Cs'?.'§"a<'3t' caused Agriprecsiaisie Effect Ciempeieiticm. in r .90 The C;emmissio:'i Ob5E.'i'\-'C3S that pijtg-\risior1§ 01 U) 3-' sectimi 'i'"_i ei "the ,~'>-.r:t stipuiate the': the acts eii raise a presumption of appreciabie adverse effect on competition in the market. However, the parties against: whom such presutmptions are raised are 'free to reisgtithem with their own sets of evidences and ei'gorriei'its. Aitiiougii the assciciations in the case have not been abie to dispute the facts of the Case imroiving ruies of registration, not peri'r'iii'ting members to cieei 'vii/iii": non- members, imposing restrictions in terms of number of screens for exhibition of fiims, prescribing iioicibeciq period for reiease on media other than theatrical reiezases, issuing show cause notices, imposing penaities and announcing boycotts , they have defended their ruies and reguiations, impugned acts and conduct saying that these are in the overaii interest of their members. These submissions need to be eigmmined to determine whether the impugned rules and reguiations, acts and conduct have imzieeci caused ani;i--com;';-eii:ii:i=ve effects in the mariaet.

6.91 As per the provisions of the Act, in oi'dei' to 'find out vviieitiier an agreement as per gwovisions of section 3(3)(b) read wiiii section 3{1} ha U':

ep_oi'ei:iai3ie aeﬁversie effects ct-ii r.:<.>mi,3e1ti+.ic:n, 'fr-i.c'ci:»i"=; E;}ec'i:i<;=:'i 19(3) of the Ilxct are reo;uii'ec7- 'to be cor:5iciei'eci._Tii FD oroxrisions and f3C'3Ci'3i"€ N' x.-

V' ».-< Section 39(3) are unciei";

I.' i") M' Tiire C'ci.mmis5ic2ri siiaii, wmie o'ez'eri'riii7mg w_i'ietiiei* on agreerrier.3t has on o_;::p:'ecioi?i'e «:2o'verse ejj'e«:'t on compefifioii uno'e!' sexiioo iio\»'e due i"€QG}'d to off or on of We feiiovi/ii'io fe;ci:i3rs, .r'iomei;.I.'----~ 'x E ij'r.:i_} Ci"'ec:i'.fi?g b{.Zh*'f'iF,3z".S iici new er2i'.i'a_i'ii'5 in i'!'1§;"; oi .,§.§ \ S E .

{iii} a'r':'w'.n.-:3' e.>;'isfi:wg COi7?{f;€?'fiTO.".E our ef the' {C} fC>re::f05ure of r:'omp=etitfon by hino'ermg entry into the market,"

(cf) occrua_l of benefits to x:o.n5u.me:;* (ea) /'m,nroVements in production or d:'5'tr.ibLm'oo of goods or prow'5ion of serwtes;

Q') promotion of L'eCl7:7/'col, sciemific and econormk: a'eve!o,:»_;;qgng by n')gg{_'1f}5 3f production or distribution of goods or prowsion of services.' 6.92 The Commission, in this regard, notes that [)6 has anaiyzed the aforesaid factors in detaii and the associations have not been abie to convﬁncingiy refute the anaiysis of DE.

6.93 The Commission observes that it is true that the actixrities of an association may beneﬁt their members and aliso may a significant roie in encouraging and enforcing codes of etiwics. These activities may include keeping assoxtiatéon members informed of trade develogaments, improving the quaiity of gnroofmts, am} working together at im;:>rov§ng trade and industry iaws. C.oC»peratE<.:.>n, e-o'u=:atEom 3-mo'? W'o:'.ma?:ir;>i". e><z:3':arf=g;es "two \ associations 'm;.'~,' Peed to techrzoizogicai adx/am;er"rxents, no C=:>mmis5%on ahgo conscious -0'? f.»3::t '1;ha'?; a5s.ocic5.:§o:". perform 'oeneﬁciai fu.m:*fions for boom Weir' members and Consumers at iarge and me;-.m_»' activéﬁes of asscsciaticms may 333.0 promote the e2?r'ic.'aen't functéoning I of the .";ar%~::e'{. Howey-zzr, the fact tile': the natme of associ:r;:i'.ic2n.9 is to *;oge'I§"«er com;3e1:i'¥_or's and association ma' its} siaitme ' «':<::>m_oet"i'£ors., co.n'2;:)«:-Ycitior; Eew C.onc:ems may - The aeiiwties o associat.i«:=n_~: may ":

of competition laws by engaging in anticompetitive conduct by the association itself. There may be certain exclusicmary actions .su~.Ci*i as Codes of ethics that restrict membership which impedes market entry or ini'iiL>i't the ability of persons to compete.

6.95 in the instant cases, the Comrhissioh cibserves that the ruies and regulations, acts and conduct of the associations are riot making markets perform ei'i'i<:ierrtly. They are in fact restricting and limiting the market in form at limit on supplies of films since without becoming member, without registering their films with the associations, no producer or distributor or exhiiziitor ca n exploit their films and compete with the existing members of the associations. The prociucers~clistributiors arid exhibitors are obliged to foiiow the dictates and directions of the associations and if they do not follow them they are punislied or boycotted, thereby, depriving them an oppoirtunity to compete ei'iectivei~,r in the area of control of these associations. The findings cit li'i'\-'E3S'[lga°£iQ!". have also reireaied that ciistrihutors like Reiiaiice Big Ehtei"tair;rriei'it aricl e>:hii::itors like cinemas tiave iost rrior'ietarii*y due to the actions at the <3S5C'ClaTlOi"iS.

're ':CriTii'E":l.'3S§Cii" iirids that the acts arid accshciiict oi' the as;sociati~:-ms}. brought c»u't in the preceadiiig pairas oi' the order establish that liaise <:ei'ised restrictions on free and fair competition in l"f"lEii"i§E"'{. There is a *Eoi'e:«:lo5iii'e O"i{'¥.'1-.'JE'i"x§.'.i-C-.'fi'=Cli;'_?i"i iii the tisider the coi'ii;r'oi of KFCC, «:arihot he. in all the cinemas lziut Ol"il\/ in holci back of 'films t'r~:;irri e>::hiil3ition of 'films 'K. prescribed as on date, ensures that films cannot be expieited on other media cQ_mp§Z5tiii_g with the theetres ieading to the ioss tc>_th_e .§3i"QdL.iCe,rs--§;§i,stribLitQI'S, 6.97 The Comrriissien aise observes that the acts arm' conducts of associatien do not bring in any imprevemerit in production or suppiy of fiims in any manner or bring any technoiegicai improvemerrts which couid have come to their defence. instead, the terms and COi'iCiitiOi'iS_. ruies and reguiations of the associations create barriers to entry for the ;::roi:§u:.:ers, distributors and exhibitors who are not their members and vi/im do not agree with their rules /reguiaticms, terms and mnditions. The bciycett irepesed by the ass.-::»<:iait.ion cirives_e><isting competitors out at the mariqet since absence of a product (of competing members or norwriembers from the market place wouid mean' reduced competing products and iesser competition in the maricet. 6.98 The Cornmission aisrz» finds that restrictiens on riori~i<annada tiims in areas under the coritroi of i<F€.C aise tie not benefit the consurriers; since the CDE"£SL2f'{'sE'i'S oiwzitci*iir1g mcwies er"'ti'ieir »::h<.:<i~.:-e. r.

The Corrimissicm hoicis that the afOre3aii::T :~mai'.,rsis of 'i'ac'ters as mewticmeci in section 19(3) e'tai:iiis?"aes 'the and CC}17'i'C'fL}C"C at ,. the .-;3CiaZiC=I'iS {'7 insteati at i:.»i'in:-ggirig in ;:>rc»--cornpeti'i:ive effects ii :::auserj !~xAEE{: in the rriaritet 6.100 We Cormriissieri aise oiziserx-'es that in ivcrter i'«.fercharits rfassociaticm (F;Ti7' Eriquiry i\i0. 1","f£3?9) the ;3ract:it:e di;"iectir'ig»; "rt:-%3><-'-rs mt with nc.m~rrieiTii3ers in the virgiriity the oi' c1» arid in er" taiiure to «.:::»mpiy with the c» 1 ti"

be e'EE='5Ci'§C"';iV{-:- trader practice.

6.101 The Commissicm aiso in cases no. 1 r3f'2OD9'(ﬂF¥CCi Muiitipiex and otiiers vs. UPDF and others) had heid the activities of film assoaziatimis which caused iimit in the supplies cf fiims tea be antimompetitive under secticm 3(3}(b) read with section 3{1) of the Act and penaities were aiso 'irrmased. 6.192. in iightbof the foregrsing, the Commission hoids that KE1i'i'iaiEska Fiim Chamber of Commerce (KFCCL Eastern india Motion Picture Associatiori {Eiix/iPA) , Narthssrn lndia Marion Picture Association ( MMPA) , Motion Picture Association (i\/]PA),Centrai Circuit Cine Association {(_ZC.1CA_), Bihar and }hari~:h§s'ici Moticm Piciures Association(BJiViPA), indian ivi0i:ion Pictures. Eiistributors Associaticm ( EMPDA) have contravened the prcwisions of section 3(3}{b) read with secticin 3(1) of the .-'l\r;'t and have causecii appreciabie adverse effect on com;3<atii:'iori in india in terms of section 319 {3} of the'Ar::t, 6.103 The Cssmnissian oi:-serves i:§'iat sim:-:-3 {T26 has no? fmirid <:<::i"sti'aw:i':tioi'i in resg:>e:=ct of Teiangsma s"-iim Ciharnber of C.ommer<;e, Chennai i<.aricizi;'3ur'=m, Q2 Ti"iirL1\«'aiiui' §isti*i::'ts Fiim Disitribmcairs Associatian and Ciriss . Fiim Disiributms E13 E;y-nciitate in i;h<-:- case no. 25 where 'th~'ey have beer» mam-sci as :'*es;:.>o:':de2rits swici HO evicience to this effect has 3t:i-sen birought ta the notice: Couii-Ge ei"

'§,3i'C}C{§E3diﬂ§;S, thei'ef0i'e for the {3Lli'§')QSE-2 :3?' the CBS?' HEB" wgvder cansiijeraticfm, lit".-I.-.-.-, ?'. Oscier under section 2'? <51' the Act , ' _ ..11Ihe...£0m.m'§ssic>.n...ﬁn.dsxha-t..A1;h»ean~ti~ccémpe$:-?tive+-~behav%orv-Wm'saﬂys «6:\n~i:~§*t'y«---»~ needs to be condenmed heaviiy for effective ﬁunction of the market. in ali Tfhése cases, the associations are taking decisibns and in which are arztﬁcompetitéx/e. The informants have aiso shmnjn that they have incurred Fosses due to the anti~cc»mpetitive abts of the assaciaticms.' The . Cmjmission 3350 notes that associations Hke KFCC were induiging in issuing. tzircuiars and Eetters of :'es';rictia1g the exhibition of nrzsrviisannada fifms and taking punitive actian agaﬁnst the Erformams, even afier issue of order um-::é;r Section 33 Of the Act which appears to be a deiiberaté anti~cc;mpbét'it§ve cQp:;ig,¢t in vioéaﬁorz rfprovisions sf Section 3(3)(b) 5:22' the Act; 1 ........ l The Commission, 'therefore, deems it ﬁt that such anti-sojmvpétitive'acts assoc.iatir;m engaged in taking simiiar decisions and cam/ir'«g on simiiar practices. As has been discussed aboxxe, the asseciatiosws re;;:resen't the ca¥§eci:ive intent of the corastiment me:"r:bes"s. Thez'efore,. effect the cons'ti';:uem members ought is be penalizeci. The associations wen-2 asked to Me their fmancial detaiis and these C?

f execaztive k!\s'%°:i..¥§a the associaikans have sL;bmit'U2d ﬁnanciai de'-taiis, exesuirwe members have not done so. in such a situation, ":he Commission has decided to deaf with "the issue ' eta' xrématians by we Assodati-xtms se3:osara't«3!y and §m;:«0se ',C>€mE2E'L"y' cm the \ '\.\ ' .='r'wernb<.:a:'s of the ...................................................................................... .. 7.3 As per provisions of section 27'(b), peneities for anti--e-competitive agreements are te be imposed .ei.ther on *;umovei' or profit, Since the asse-ciatiens are not having turnover eftheir own Quit of expiieitatien of the V activities of film o'istribution and eamibitiori and are having receipts from members besides some ether rriisceiianeous income and aise considering thét the ass0ciati<:ms" represent the coiiective intent of the members and the decisic-ins ef the associations are having anti~c:€:»mpe'titive effects on the market, the Cemmissien finds it appropriate ta impose penalties on receipts/iricome 0*." these associations.

7,4 Leaking at the gravity ef tre aiiegations, the Commission decides to impese a penaity on each of these associations at rate of 10% ef the average of the three xgears receipts/income. in case of BiMF--'A and EWiPA average of two years receipts as avaiiaiaie has been tekeri. The <:aic:uEati«:>n of penaity amount on different asse«:iations is given under.

Nzsnae ef Itnc;>me,,«" {ii 'ihree ysszar-5 {in A\_ser'age at' three .10 as t E . ,. ' 5 N, Assocsetmn 3:2:-srs E at' zsvezrage inc-zxme/receipts income

- ;'rs:«.:em:s Z-'.'}C'T~§--1{') V 231C--3.1 § 1 KF-CC 1,S?.,éi2_.r-'+'~87' 1.,;T-7,=?C=,E29 3,35,23,01? 1,EiEi,22,E}4"+«'1i 1E,82«,2O43-

2. C-T_7i";f~\ €«Zi,t3'.7,-8.25

3. BJM PA Net

-". "\ ' 1 ;..2pi...i:ed 2' 1 4, NM 21,74,520 27',,22,7'6ii. 'E*9_,47,72z; 25,15,035 " 2,{-31,503 ﬂ 5_ fi'\ii?\.viPﬁ\ 24,75,247 2a:i,97_,193 i§'§,s2,59e " 28,43,010 6, EINEPA 57,35,026 e0,r.13,7~:«o z~ioi 58,89,408 5,ee,e4e

37. ii\/EPDA 44,l6i,él15 43,15,373' 40,33,495 42,:i3,429 i4,2?;i342 7.5 The Commissien aiso directs that the associaitions sheuici deposit the afi::»resaici amount within 60 days elf receipt of this order. 7.6 in adidition, the Ccmrnission aiso directs ail the associations to cease and desist fmm the foéiowing practices and take suitabie measures to modify or remove them imm their articies cu' association, ruies and z'eguiatioi"is he L45 been eiiszcazssed in this ardei' $i;n«:e they are anti cempetiiive :

3} The assc3C.ie':ions sheuid me': cc-miaei any pmciucer, ::iisiirii:«i.itor er exhi'?3i'ter to become its members as a _L"ii'e--cciiiriitizsn fer exiiitiitiezi sf their '£'i§s":"-,3 in the teri":'tm*ies Uiidéﬁif "i:i'ieii' ceimei m-eciifyi mies. EiC.{3C)fdiiE'i,{.-jiy.

b) The essociatimis should not keep any ciause in "uies and i'C;'{§Li§3UC3ﬂS wi"iiz:i"~. ma!-:2:-23 aim! «:ii"::"':miria'iﬁic>i'i it-etween fiimaa and iriwgacise concéiticiiiz whi::i*. are§d__ ,,, ., \_\\.,. 'Q;

regienai films.

,, /"

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ~ . . . . . . . . . . . . . . . 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , , C) The miesof restrictirms on the number tn' si:ri~:-ens on the basis of iashjgujigge .0? '.€.h.e_ méiﬁﬁief in Whiifgh aWpa.,rtiC.iiiar fiirri is to {biz ;g;s;hi_i;1i3:ed shouirzri be done away with.

d) Associations should n0'1:i:>u>t am; cezmdition regarding how back period for-.

reiease of ﬁims tiirough ather metiia like, CD, Sateiiite etc. These .,ciec:isioris shouid be left to the coricerried parties. 62} The condition of compuisczzry registration of fiims as a pre:--ci:>n.ditir:>n far reiease of any fiim and existing ruies mi' association as discussed in the precaciing paras {if this order on the' issue shauid be dispensed with.

8. The direrstioris in para 7.6 above, shouid be comiaiiied with within a period of \ 'three montiis from the" date cf receipt of this C:-rder.

9. The Commissicm decides accordingiy.

10-. Secmtary is ciinacted ta i:osi'inmi'iicate 'i.'i'iiS Carder as per regiiiaticrns to aii 'tire parties.

.7 _ 1' )4 Srin-

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Competition Commission of India

Ref: Case No. 25/2010, 41/2010, ... vs .£33 U?" £~':S5=..Ig1"M'1E':Nt 0'? ... on 16 February, 2012