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Compat's order on Digital Cinemas matter positive: KSS Digital

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Press Trust of India New Delhi
With Compat asking CCI to probe allegations of alleged unfair business ways made against Digital Cinemas and six others, KSS Digital Cinema today said it expects the Competition Commission to "take necessary steps" in this regard.

The company had filed the complaint -- pertaining to alleged anti-competitive practices in the digital cinema exhibition market -- which was rejected twice by Competition Commission of India (CCI).

Last week, Competition Appellate Tribunal (Compat) had set aside the CCI's decision to reject a complaint of alleged unfair business ways made against US-based Digital Cinemas Initiatives LLC, a joint venture, and its six stakeholder partners. They are The Walt Disney Company India, Fox Star
 

Studios, NBC Universal Media Distribution Services, Sony Pictures, Warner Bros and Paramount Films India.

"We welcome this positive move. With the review, we hope that CCI will take the necessary steps as per the directives of tribunal to help players like us to operate seamlessly and provide a platform to all competing players to mutually operate in the market," KSS Digital Cinema Ltd's CEO Rahul Kanani said in a statement.

If implemented, it would further help to increase the distribution of Hollywood movies in Indian market, he added.

KSS Digital Cinema is part of KSS Ltd, formerly known as K Sera Sera Ltd.

The watchdog dismissed the allegations twice, in April 2015 and June this year.

In a strongly-worded order dated November 9, Compat said CCI "committed serious error by declining to order an investigation".

"Rationally speaking, it would have saved time and efforts of all those involved in this matter if the Commission had ordered an investigation by the director general instead of once again more or less reiterating its earlier views," the Tribunal said in the order.

Compat said the "impugned order is set aside and the Director General is ordained to conduct investigation into the allegations contained in the information filed by the appellant (K Sera Sera)".

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First Published: Nov 14 2016 | 7:22 PM IST

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