1. Background

1.1 A number of cases have been filed under the provisions of section 19(1) (a) of the Competition Act, 2002 (Act) alleging certain anti-competitive acts on the part of Karnataka Film Chamber of Commerce (KFCC), Central Circuit Cine Association, (CCCA), Motion Pictures Association (MPA) and other film bodies/associations which are associated with the business of film distribution and exhibition in India. The Commission has passed a consolidated order in case nos. 25, 41, 4b, 47, 48, 50, 58 and 69 concerning such associations. The present order relates to case nos 52 & 56 of 2010 in which Central Circuit Cine Association, Northern India Motion Pictures Association, Motion Pictures Association and Film Distributors Association, Kerala are the common respondents. In case no. 56, in addition to these four, Telangana Telugu Film Distributors Association (TTFDA) and Karnataka Film Chamber of Commerce (KFCC) happen to be the other two respondent parties.

1.2 in all these cases, the basic issues raised by the Informants are identical. It has been alleged that these film bodies/associations have indulged in various anticompetitive activities in violation of the provisions of sections 3 and 4 of the Act viz; asking the producers-distributors to compulsorily register their films before release, with them in territories under their control, forcing them to abide by their unfair and discriminatory rules, directing the members not to deal with the non-members, prescribing undue long holdback period for satellite, DTH and other rights in respect of exhibition of films and imposing bans, penalties and giving a call of boycott against those who violate the rules and regulations of the associations.

1.3 In addition to the aforesaid issues, the Informants also pleaded for interim orders under section 33 of the Act in these cases in order to secure release of their films.

1.4 Since the issues in these two cases are almost identical, the Commission has considered it fit to dispose of these cases with one common order. Background and Profile of the parties

1.5 The business of film making consists of various stages involving pre- production, production, post-production, distribution and exhibition. A distributor acquires distribution rights from the producer of a film and thereafter recovers his costs from the revenues earned through exhibition of that film. Now-a-days, many producers are also performing the role of distributors and prefer to distribute their own films.

1.6 For the purposes of assignment of film distribution rights, territory of entire India at present is broadly divided into 12 circuits. In each of these circuits, associations of film distributors and exhibitors have generally been formed either under section 25 of the Companies Act, 1956 or under the Societies Registration Act, 1860. These associations regulate the business of film distribution and exhibition in their area of control and have their own Memorandum and Articles of Association. In addition, rules and regulations to regulate the activities of film distribution and exhibition have also been framed by them. These associations mainly consist of the persons engaged in the business of film distribution and exhibition. However, some of the associations also have the producers as their members.

1.7 A brief profile of such associations who have been named in these two cases under consideration is given below;

Profile of Respondents

(A) Central Circuit Cine Association (OP-1 in case no. 52 and OP-3 in case no. 56)

1.7.1 Central Circuit Cine Association (CCCA) was formed in 1952 and is registered under section 25 of the Companies Act. It is the representative organization of the film distributors and exhibitors from the State of Maharashtra, Chhattisgarh, Madhya Pradesh and Rajasthan (Vidarbha & Khandesh Regions).

(B) Film Distributors Association, Kerala (OP-2 in case No 52 and OP-5 in case no. 56)

1.7.2 Film Distributors Association (FDA), Kerala is registered under se