CCI imposed penalty upon three Film & TV association of Karnataka

Competition Commission of India (CCI) on 29 July 2015 imposed penalty upon Karnataka Film Chamber of Commerce (KFCC), Karnataka Television Association (KTVA) and Kannada Film Producers Association (KFPA).

The penalty was imposed for contravening the Section 3 of the Competition Act, 2002.

Considering the recurring violation of the provisions of the Act and the complete disregard to the competition law principles by KFCC, the Commission imposed a penalty of 1682204 rupees calculated at the rate of 10% of its average income on KFCC.

Further penalty of 174293 rupees and 168124 rupees calculated at the rate of 8% of the average income of KTVA and KFPA, respectively, were imposed on them.

The Informant, an association of viewers within the State of Karnataka, had approached the Commission alleging anti-competitive conduct by various associations in Karnataka in not allowing dubbed content in the form of films and TV serials.

Consequent upon detailed investigation by the Director General, the Commission concluded that the KFCC, KTVA and KFPA, were involved in the practice of preventing the release/telecast of dubbed Films/TV serials in the State of Karnataka.

The Commission further found that the prohibition on the exhibition of dubbed content, both films and/or TV programmes, prevents the competing parties in pursuing their commercial activities and thus, they were indulged in anti-competitive conduct in contravention to the Section 3 of the Competition Act.

Accordingly the Commission directed KFCC, KTVA and KFPA to cease and desist from indulging in practices which were found to be anti-competitive. The Commission took note of its early orders against KFCC where it was found to be acting in an anti–competitive manner.

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