On December 29, 2017, CCI dismissed information filed against Viacom 18, Aditya Chowksey, UFO Movies India Ltd., E-City Digital Cinema Pvt. Ltd., Real Image Media Technology Pvt. Ltd., United Media Works Pvt. Ltd., K Sera Sera Digital Cinema Pvt. Ltd. (‘KSS’) and the Film & T.V. Producers Guild of India Ltd. (‘the Guild’) (collectively referred to as ‘Cinema Operators’) by the sole proprietor ‘M/s Prakash Cinema’ in Madhya Pradesh by way of an order under Section 26(2) of the Act.Cinema Operators are in the business of supplying necessary digital cinema equipment (‘DC Equipment’) used to capture signals of films to be exhibited in the cinema hall. The Guild is the parent body of all the producer associations.It was alleged that KSS wrongly terminated its agreement with the Mr. Arjun (the Informant) and proceeded to remove DC Equipment from Arjun’s premises, preventing Arjun from carrying on its business. It was also alleged that the Guild, the parent body of all producers’ associations to which most producers were affiliated, issued a directive to all producers not to exhibit their movies in the Arjun, the Informant’s cinema. Accordingly, it is alleged that by failing to provide DC Equipment to Arjun, the Cinema Operators together and, KSS in particular, abused their dominant position under Section 4 of the Act. Similarly, the Guild had contravened Section 4 of the Act by preventing film producers from exhibiting movies in the Informant’s cinema.CCI dismissed allegations against the Cinema Operators on the ground that the scheme of the Act does not provide for ‘collective dominance.’ CCI also observed that since Cinema Operators weren’t engaged in same line of business, their conduct could not be scrutinized under Section 3(3) read with Section 3(1) of the Act for concerted/collusive action. To examine allegations of abuse of dominance against KSS, CCI defined the relevant market as the “provision of DCE services for the purpose of screening/exhibiting films in India.” However, CCI observed that various other players offered DC Equipment from whom Arjun could procure necessary equipment, thus demonstrating that the relevant market was competitive. Absent dominance, no case for abuse of dominance was made out against KSS. In any event, CCI held that the agreement between Mr. Arjun, Informant and KSS did not appear to be onerous or one-sided and allegations of wrongful termination was not a competition concern, and appeared to be in the nature of a contractual breach.CCI equally dismissed allegations of abuse of dominance against the Guild as Arjun failed to provide any material to substantiate that the Guild had, in fact, issued any oral or written directions to its producer members not to exhibit their films in Arjun’s cinemas.

* Case No. 57 of 2017 .