Competition Commission imposes Rs. 52.24 cr penalty on BCCI

The Competition Commission of India (CCI) on Wednesday imposed fine of Rs 52.24 crore on the Board of Control for Cricket in India (BCCI) for anti-competitive conduct in the IPL Media Rights agreement.

The order against BCCI came after CCI found the cricket body using its "dominant position for imposing restriction that deny access to the market for organisation of professional domestic cricket league or events."

Earlier in 2013, the Commission had imposed the same amount of penalty on BCCI.

An order issued by the CCI read that the CCI has found BCCI to be in "contravention of the provisions of Section 4(1) read with Section 4(2)(c) of the Competition Act, 2002 (Act) for its assurance to the broadcasters of Indian Premier League (IPL) that BCCI shall not organise, sanction, recognise, or support another professional domestic Indian T20 competition that is competitive to IPL, for a sustained period of ten years."

It also said, "The assessment of the Commission clearly brings out that the impugned clause in the IPL (Indian Premier League) Media Rights Agreement has been pursued by BCCI consciously to protect the commercial interest of the bidders of broadcasting rights as well as the economic interest of BCCI."

Although, at present, the average of the relevant turnover for the last three financial years of the BCCI is slightly higher than the one which was considered by the Commission while passing the earlier order.

The Commission prefers to maintain the penalty of Rs. 52.24 crore, which comes to nearly 4.48 percent of the average of the relevant turnover during the last three preceding financial years.

However, CCI has directed BCCI to deposit the aforesaid penalty amounts within 60 days of the receipt of this order.