Regulator Asks Film Industry Associations To Stop Anti-Competitive Conduct 

Twenty-five film industry associations have been found guilty of anti-competitive practices by the Competition Commission of India.

The regulator said the associations used their position to disrupt competition and fair play in the market. The order was passed on the complaint of independent filmmaker Vipul Shah, who has movies like ‘Aankhen’, ‘Namastey London’ and ‘Singh is Kinng’ to his credit.

Shah alleged that the associations made unreasonable demands and threatened film and television content producers that their members would not work if the demands were not met.

In its order, the CCI noted that the associations entered into agreements and through them issued non-cooperation directives, prohibited hiring of specialised non-member artists, conducted vigilance checks, stalled shoots for hiring of non-members and levied penalty on producers for hiring non-members. All this, the regulator concluded, amounts to limiting and controlling the services in the western Indian film and television industry.

The regulator, however, did not impose any penalty on the associations on grounds that the agreement was a mechanism to resolve disputes between the producers on one side and the craftsmen employed by them on the other. And that some associations have daily-wage earners as their members. Consequently, the CCI directed the parties to cease and desist from indulging in anti-competitive conduct.