Press Information Bureau

Government of India

Ministry of Corporate Affairs

21-January, 2013 18:14 IST

The Competition Commission of India passed its final order today against Northern India Motion Pictures Association (NIMPA) directing it to cease and desist from indulging in anti-competitive conduct. The order has been issued in a case filed by M/s ShriAshtavinayak Cine Vision Limited against NIMPA and other film associations alleging inter alia contravention of the provisions of sections 3 (anti-competitive agreements)of the Competition Act, 2002.

The Commission found NIMPA’s practices of pressurizing the distributors to settle the monetary disputes with its members to be in contravention of the provisions of Competition Act. Accordingly, the Commission also directed NIMPA to file an undertaking regarding compliance of its order within a period of 30 days from the receipt of the order.

As NIMPAwas already directed by the Commission in earlier cases to suitably modify its Articles of Association, rules and regulations and remove the condition of compulsory registration of films as a pre-condition for release of any film, the Commission did not find it necessary to pass similar directions again in the present case. The Commission also did not find it appropriate to impose any penalty upon NIMPA in light of the facts and circumstances of the present case.

The order of Commission has been passed in Case No. 71 of 2011and a copy of the order has been uploaded on the website of CCI at www.cci.gov.in.

 

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Anti-competitive agreements: association directed to cease pressuring distributors for settlements following finding of unlawful coordination under competition law. The Competition Commission found that NIMPA pressured distributors to settle monetary disputes with its members, contravening provisions on anti-competitive agreements, and directed NIMPA to cease and desist from that conduct and to file an undertaking of compliance within thirty days, while declining to repeat prior directions on articles and to impose a penalty.