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The Competition Commission of India (CCI) has stepped in to examine whether multiplex giant PVR Inox has been engaging in practices that hurt film producers. The move comes after a formal complaint by the Film and Television Producers’ Guild of India, which alleged that the country’s largest cinema chain continues to collect fees that should have been scrapped years ago, according to a report by The Economic Times.
The issue at the centre of the dispute is the virtual digital fee (VDF). Introduced in 2007, it was meant to support the costly shift from analogue projectors to digital cinema systems. While Hollywood studios stopped paying the charge nearly a decade after their transition, Indian producers say they are still being forced to bear the expense, the news report said.
The Guild argued that such charges unfairly burden small and mid-sized producers, limiting their ability to compete on equal terms.
CCI’s investigation timeline
In its order dated Tuesday, the CCI noted a prima facie violation of competition rules. It directed its Director General (DG) to carry out a detailed probe and submit a report within 90 days.
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The DG will also examine whether company executives or officers were directly responsible for the alleged anti-competitive conduct. The CCI clarified that its observations should not be treated as a final decision, and the investigation would proceed independently, the news report said.
PVR Inox’s financial performance
In the April-June quarter (Q1FY26), PVR Inox narrowed its consolidated loss to ₹54 crore, compared with a steep ₹1,790 crore loss in the same quarter last year.
Revenue from operations grew by 23 per cent year-on-year to ₹1,469 crore, supported by a stronger line-up of films and higher audience turnout. Other income also saw a 13 per cent rise, reaching ₹32.4 crore.
Films such as Sitaare Zameen Par and Mission: Impossible – The Final Reckoning boosted cinema footfalls by 12 per cent year-on-year. Average ticket prices increased by 8 per cent to ₹254, while food and beverage spending per person jumped 10 per cent to an all-time high of ₹148, news agency Reuters reported.
To attract more viewers, the company offered discounted weekday tickets and re-released popular older films.
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