The Competition Commission of India (CCI) has imposed a penalty of Rs 1.04 crore on UFO Moviez India and its subsidiary Scrabble Digital and Rs 1.66 crore on Qube Cinema Technologies for indulging in anti-competitive conduct.
The matter pertains to the tussle between theatre owners and companies like UFO Moviez and Qube which supply digital cinema equipment on rent.
In an order, CCI said UFO Moviez and Qube imposed restrictions on the supply of content in their lease agreements with theatre owners which created barriers for players engaged in the post-production processing services. In addition, these companies blocked cinema theatre owners (CTOs) with digital cinema initiatives-compliant digital cinema equipment from being served by any other player.
The CCI has also directed UFO Moviez and Qube to not re-enter lease agreements with the CTOs imposing restrictions on supply of content from other parties. Further, the antitrust regulator has held that the existing lease agreements with CTOs shall stand modified such that they do not impose restrictions on supply of content from parties other than UFO Moviez (and its affiliates) and Qube. The erring parties have been asked to deposit the penalty amount within 60 days. Financial Express