Under section 26(2) of the Competition Act, 2002

The present information has been filed by Ajay Devgn Films ('the informant') under Section 19(1)(a) of the Competition Act, 2002 ('the Act') against Yash Raj Films Private Limited ('OP No. 1'), Yash Raj P.P. Associates Private Limited ('OP No. 2'), Yash Raj Puri & Co. Pvt. Ltd. ('OP No. 3'), Yash Raj Pal Film Distributors (Banglore) Pvt. Ltd. ('OP No. 4'), Yash Raj Vandana Film Distributors Pvt. Ltd. ('OP No. 5') and Yash Raj Kushagra Arts Pvt. Ltd. ('OP No. 6') (collectively referred to as 'opposite parties) alleging inter-alia contravention of sections 3 and 4 of the Act.

2. The informant is a sole proprietary concern of a well known Bollywood actor engaged in production of films. OP No. 1 is a company incorporated under the Companies Act, 1956, engaged in production and distribution of films. OP No. 2 to 6 are various other companies associated with OP No. 1 engaged in distribution of films all over India. As per the allegations, the opposite parties were dominant in the relevant market of 'film industry in India'. The film business mainly involves three stages-production, distribution and exhibition. A producer spends money during the making of the film. A film Distributor acquires distribution rights from the producer of the film. The distributor then makes copies of the film, spends money on publicity, advertising, marketing, cost of prints and other distribution costs. The film distributors, either themselves or through sub-distributors, then enter into agreement with the exhibitors (owners of the single screen theatres and multiplexes) for screening of the films. The revenue generated at the exhibition stage is shared by the producers, distributors and exhibitors as per their respective revenue-sharing arrangements.

3. The informant's grievance is that the opposite party released its mega starrer film Ek Tha Tiger on 15th August, 2012. At that time the opposite parties were contemplating to release another untitled film later named as Jab Tak Hai Jahan (JTHJ) at the time of Diwali. The opposite parties before the release of Ek Tha Tiger had put a condition on single screen theatres that if they wanted to exhibit Ek Tha Tiger, they would have to simultaneously agree to exhibit the other film JTHJ at the time of Diwali. Any single screen theatre who did not agree to booking of his theatre for both the films would not get the right to exhibit the single film. While some theatres entered into agreement with the opposite parties for exhibition of both the films, namely Ek Tha Tiger and JTHJ, some did not agree to this and did not enter into the agreement.

4. It is contended by the informant that since Ek Tha Tiger was a big ticket film bound to be a block buster and its exhibition was profitable for the single screen theatres, majority of single screen theatres entered into agreement for exhibition of both the films because of the big name and dominance of opposite party. Since there was a threat that the opposite parties would not allow exhibition of even Ek Tha Tiger if the contract for exhibition of other film was not entered simultaneously, it amounted to abuse of dominance. The single screen theatres under compulsion had to enter into this contract. The informant alleged that this was violation of section 3 as well as section 4 of the Competition Act. The informant submitted that Ek Tha Tiger was released at the time of EID and JTHJ is to be released at the time of Diwali. This grievance of the informant arose because the informant feared that he would not get enough theatres for his own film Son of Sardar because of the agreement of single screen theatres with the opposite parties at the time of releasing Ek Tha Tiger. The informant contended that the agreement between the opposite parties and the film exhibitors for exhibition of the two films together amounted to contravention of section 3(4)(a), 3(4)(b) and 3(4)(d) as well as contravention of section 4(2)(a).

5. The