CCI Dismisses Allegations of Abuse of Dominance against certain Film Producers and Distributors of Movies in Andhra Pradesh and Telangana

On August 1, 2019, CCI dismissed allegations made by one Mr. Ashok Kumar Vallabhaneni (‘Informant’) against Geetha SP Entertainment LLP and 67 others (collectively ‘Opposite Parties’) alleging contravention of the provisions of Sections 3 and 4 of the Act. [1]

The allegations pertain to a Theatrical Distribution Agreement through which the Informant had purchased the distribution and exhibition rights of a movie dubbed in Telugu in the States of Andhra Pradesh and Telangana. It was alleged that the Opposite Parties cartelized amongst each other to deprive the Informant from exhibiting his movie in sufficient screens. It was further alleged that the Opposite Parties were discriminating among producers producing Telugu movies and movie dubbed in Telugu. To prove this, the Informant contended that the Opposite Parties provided many screens to 3 other Telugu movies in violation of provisions of Section 4 of the Act.

CCI observed that the Informant failed to furnish any material/ document to demonstrate a cartel amongst the Opposite Parties. With respect to the allegations on violation of Section 4 of the Act, CCI noted that Section 4 contemplates abuse of dominance by an enterprise or a group, but does not recognise collective dominance. Accordingly, CCI dismissed the complaint.

[1] Case No. 17 of 2019.

Published In:Inter Alia Special Edition- Competition Law - September 2019 [ English
Date: September 21, 2019