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TMI Blog2024 (1) TMI 1388X X X X Extracts X X X X X X X X Extracts X X X X ..... rious orders has upheld the freedom enjoyed by the enterprises in the market subject to compliance of the provisions of the Act. The Commission is of the view that there must be autonomy available to the exhibitors to deal with movies the way they want, in alignment with their business requirements and subject to provisions of the Act. In this vein, nobody can ask for an absolute right to deal with a particular business. Similarly, there is no absolute right of refusal. This will depend upon the facts and circumstances of each case. Thus, the right to choose a movie for exhibition lies with OP and this freedom cannot be curtailed by compelling it to exhibit the movie of the Informant unless and until it causes any harm to competition. The Commission is of the opinion that, prima facie, as there appears no discernible competition concern in the matter, it would not be appropriate for the Commission to delve into allegations of abuse of dominant position which requires delineation of relevant market. Accordingly, the Commission does not deem it necessary to delineate the relevant market and undertake further assessment thereupon. With regard to applicability of Section 3(4) of the Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n between big production houses and the OP, creating entry barrier for films by independent film producers. The Informant has stated that the movie Kya Yahi Sach Hai received an overwhelming response on YouTube, garnering about 1.3 crore views. 6. Further, the Informant has stated that he attempted to contact the OP for striking a dialogue for the exhibition of his upcoming film in the OP s theatres, vide email dated 19.04.2022 on its authorized email address, but the same was blocked by the OP. Later on, vide letter dated 19.04.2022, the Informant tried to get certain issues redressed; however, there was no response from OP. 7. The Informant has leveled allegations against OP in respect of contravention of the provisions of Sections 3 and 4 of the Act, which are, inter alia, listed as under: (i) OP accords special treatment to films of large production houses by entering into special tie-ups with them for production, promotion, release and exhibition of films, thereby causing entry barrier for films made by independent filmmakers. It has been stated by the Informant that the OP was indirectly involved in the production of film Brahmastra, as consequence of which, the film received ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act vis- -vis other sectors of the economy. 10. In view of the foregoing, the Informant has prayed to the Commission for an investigation into the allegations made in the Information and inter-alia issue following directions to the OP: (i) to give concessions to all filmmakers on same terms, (ii) to make public all the terms of the agreements made with large production houses, (iii) not to enter into special tie-ups with large production houses with respect to allocation of screens, promotional trailers and (iv) to disband vertical integration of film production and exhibition. The Informant has also prayed that suitable fine be imposed upon the OP for indulging in anti- competitive conduct. 11. The Informant has also sought interim relief under Section 33 of the Act restraining the OP from entering into exclusive tie-ups with specific production houses during the pendency of the instant proceedings and directing the OP to spell out the terms and conditions for screening films by independent filmmakers. 12. The Commission considered the matter on 05.07.2023 and directed OP to file its comments/reply, if any, within 4 weeks with a direction to serve a copy to the Informant, i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... jority of OP s exhibition revenue is earned from films produced and distributed by third parties. It has also been stated that vertical integration between exhibitors and other stakeholders is fairly common in the industry. 17. OP has also submitted that allegations with regards to violation of several local and municipal laws and not promoting intellectualism of the nation are not covered within the ambit of the Act. Analysis of the Commission 18. The Commission considered the matter on 08.11.2023 and decided to pass an appropriate order in due course. 19. The Commission notes that the primary grievance of the Informant stems from the alleged discriminatory treatment by OP in allocation of screens for exhibition of movies. It has been alleged that OP allocates almost all of its screens to films produced by large production houses which leaves no place for films produced by independent filmmakers. Furthermore, vertical integration by OP in the film exhibition industry which may squeeze out competition has also been alleged by the Informant. 20. With regard to the allegation of allocating almost all its screens to films produced by large production houses, the Commission notes that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mercial wisdom of the exhibitors is largely governed by consumer demand and unless harm to competition is apparent, any intervention will only lead to undesirable consequence by taking away the autonomy of such undertaking and substituting the decision of such entity by the decision of the regulator. In the realm of competition law, it is widely understood that firms have an autonomy to choose their trading partners as long as the exercise of such autonomy does not affect the fair functioning of the markets. The Commission in its various orders has upheld the freedom enjoyed by the enterprises in the market subject to compliance of the provisions of the Act. 25. Based on the justifications provided in preceding paragraphs, the Commission is of the view that there must be autonomy available to the exhibitors to deal with movies the way they want, in alignment with their business requirements and subject to provisions of the Act. In this vein, nobody can ask for an absolute right to deal with a particular business. Similarly, there is no absolute right of refusal. This will depend upon the facts and circumstances of each case. Thus, the right to choose a movie for exhibition lies wit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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