CCI slaps Rs 2.3 lakh fine on 2 Kerala-based film associations

Fair trade regulator CCI has imposed a total fine of Rs 2.30 lakh on two Kerala-based groupings of theatre owners and film distributors as well as on their office bearers for indulging in anti-competitive practices.
CCI decided to penalise Kerala Film Exhibitors Federation (KFEF) and Film Distributors Association, Kerala (FDA) after a detailed probe found them violating competition norms.
The two entities indulged in unfair business practices by controlling and limiting the distribution of movies to pre-determined release centres in Kerala through an agreement.
In a 30-page order, Competition Commission of India (CCI) said it was imposing penalties of Rs 56,134 and Rs 45,189 on KFEF and FDA, respectively.

Besides, KFEF's President P V Basheer Ahmed has been slapped with Rs 39,478 fine while General Secretary M C Bobby has been asked to pay a penalty of Rs 33,445.
With respect to the anti-competitive ways of FDA, the Commission has imposed a fine of Rs 46,331 on its General Secretary M M Hamsa and Rs 8,700 on former President V C George, the order said.

Together, these penalties amount to nearly Rs 2.30 lakh.
The complaint was filed by another grouping Kerala Cine Exhibitors Association (KCEA), which had alleged that the two groupings were not allowing screening of new films in the theatres owned by its members.

A detailed investigation revealed that the conduct of KFEF and FDA in agreeing on the number of theatres where the new movies would be released resulted in restricting/limiting the release of such movies, CCI said.
The probe was carried out by CCI's Director General (DG).
"KFEF ensured that despite having necessary infrastructure and appropriate classification/grading from the committee appointed by the government of Kerala, the theatres owned by members of the informant (KCEA) were not getting fresh releases/ new movies.
"It was observed by CCI that any industry player who flouted the said mandate of KFEF was boycotted by the members of KFEF," an official release said.