CCI imposes Rs 20 lakh fine on 3 Karnataka-based associations

For indulging in anti-competitive practices, fair trade regulator CCI has imposed a total penalty of Rs 20 lakh on three Karnataka-based groupings -- including television and Kannada film producers associations.
They have also been directed to "cease and desist" from unfair business practices.
The Competition Commission of India (CCI) has penalised Karnataka Film Chamber of Commerce (KFCC), Karnataka Television Association (KTVA) and Kannada Film Producers Association (KFPA).
The case pertained to allegations that these entities indulged in anti-competitive activities by not allowing the release and broadcast of any dubbed content, within Karnataka.
In a rare move, the Commission has also asked the three groupings to bring a "Competition Compliance Manual" to educate their members about the basic tenets of competition law principles.

"These erring associations should play an active role in creating awareness amongst their members of the provisions of the (Competition) Act through competition advocacy," the regulator said in its 33-page order.

Coming down heavily on KFCC, it said the entity has indulged in anti-competitive conduct in various cases.
"This is a case of continuous violation of the provisions of the Act and of complete disregard to the competition law principles by KFCC," it noted.
Hence, KFCC has been asked to pay a penalty of Rs 16.82 lakh, which accounts for 10 per cent of its average annual turnover for three financial years -- 2008-09, 2009-10 and 2010-11.

For KTVA, the penalty is Rs 1.74 lakh whereas in the matter of KFPA, the fine amounts to Rs 1.68 lakh. In both cases, the penalty amounts of 8 per cent of its three-year average annual turnover.
Together, fine on the three entities is Rs 20.24 lakh.
"Any form of restriction to deny market access to other language films or programmes is not justified... Any kind of regulation or restriction by an association falls foul of competition law provisions," said the CCI order, dated July 27 and made public today.
The regulator noted the three entities' action resulted in "limiting and restricting the market of dubbed films/ serials in Kannada language" which violates competition norms.

A detailed probe into the matter was ordered by the Commission in October 2012 and its investigation arm, Director General, submitted its report in April 2013.