The Competitors Fee of India (CCI) on Wednesday imposed financial and non-monetary sanctions on UFO Moviez India Pvt. (UFO Moviez), its subsidiary Scrabble Digital Ltd. (SDL) and Qube Cinema Applied sciences Pvt. Ltd. (Qube), for adopting anti-competitive practises in digital cinema {hardware} and software program market, ensuing amongst others in tie-in association, and unique provide settlement that restricted different gamers.
The CCI accordingly imposed a penalty of ₹104.03 lakh towards UFO Moviez, and its subsidiary Scrabble Digital Ltd. and ₹165.8 lakh towards Qube Cinema Applied sciences Pvt. Ltd.
The Fee, “after contemplating nature and gravity of the contravention together with evaluation of mitigating and aggravating elements”, imposed the financial penalty, it stated in a press release issued to media.
The three important gamers adopted enterprise practices which contravened provisions of Part 3(4) of the Competitors Act, 2002.
The Fee discovered that UFO Moviez and Qube, by imposition of restrictions on provide of content material in lease agreements entered into with Cinema Theatre Homeowners (CTOs), created limitations for gamers engaged within the provision of Publish-Manufacturing Processing (PPP) providers in addition to blocked a good portion of CTOs having Digital Cinema Initiatives Compliant Digital Cinema Tools (DCI-Compliant DCEs) from being served by some other participant.
DCI-Compliant DCE refers back to the {hardware} and software program that guarantee a constant and high-quality digital cinema expertise. It contains gadgets resembling projectors, servers, and different associated units that may play again Digital Cinema Packages (DCPs).
UFO Moviez and Qube have been important gamers for the provision of DCI-Compliant DCE on lease or lease to the CTOs in India, the CCI acknowledged in its Wednesday’s order.
The Fee, as per the assertion, additionally discovered that UFO Moviez and Qube, by imposition of restrictions on provide of content material in lease agreements entered into with CTOs, created limitations for gamers engaged within the provision of Publish-Manufacturing Processing (PPP) providers.
They blocked a good portion of CTOs having DCI-Compliant DCEs from being served by some other participant — an offence Part 3(4) of the Act.
The Fee directed UFO Moviez and Qube to not re-enter lease agreements with the CTOs imposing restrictions on provide of content material from different events.
It additional held that the prevailing lease agreements with CTOs shall stand modified such that they don’t impose restrictions on provide of content material from events aside from UFO Moviez (and its associates) and Qube.
Printed on April 18, 2025
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