CCI orders probe into PVR Inox over alleged unfair fee on film producers

New Delhi: The Competition Commission of India (CCI) has initiated a detailed investigation into multiplex giant PVR Inox following complaints of anti-competitive practices, including the imposition of a "virtual print fee" (VPF) on movie producers despite the industry's shift to digital distribution. 

The probe, ordered on September 30, aims to examine whether these charges violate fair trade norms and disproportionately burden smaller filmmakers, stated news reports.

The complaint was filed by the Film and Television Producers Guild of India (FTPGI), which alleged that PVR Inox continues to levy the VPF, a fee originally introduced to cover the costs of transitioning from physical film prints to digital projection, even though the digital infrastructure has been fully amortised. 

According to the guild, this practice creates an unfair financial strain on small and mid-sized producers. 

The CCI's prima facie order directs its Director General to complete the investigation within 90 days and submit a report.

The guild's petition highlighted that while international practices have phased out such fees post-digital transition, PVR Inox persists with them, allegedly breaching Sections 3 and 4 of the Competition Act, which prohibit anti-competitive agreements and abuse of dominant position.

If violations are found, PVR INOX could face hefty penalties, up to 10% of its average turnover, or be mandated to cease the disputed practices.