Crime Today News
The Competition Commission of India (CCI) on Wednesday imposed monetary and non-monetary sanctions on UFO Moviez India Pvt. (UFO Moviez), its subsidiary Scrabble Digital Ltd. (SDL) and Qube Cinema Technologies Pvt. Ltd. (Qube), for adopting anti-competitive practises in digital cinema hardware and software market, resulting among others in tie-in arrangement, and exclusive supply agreement that restricted other players.
The CCI accordingly imposed a penalty of ₹104.03 lakh against UFO Moviez, and its subsidiary Scrabble Digital Ltd. and ₹165.8 lakh against Qube Cinema Technologies Pvt. Ltd.
The Commission, “after considering nature and gravity of the contravention along with assessment of mitigating and aggravating factors”, imposed the monetary penalty, it said in a statement issued to media.
The three significant players adopted business practices which contravened provisions of Section 3(4) of the Competition Act, 2002.
The Commission found that UFO Moviez and Qube, through imposition of restrictions on supply of content in lease agreements entered into with Cinema Theatre Owners (CTOs), created barriers for players engaged in the provision of Post-Production Processing (PPP) services as well as blocked a significant portion of CTOs having Digital Cinema Initiatives Compliant Digital Cinema Equipment (DCI-Compliant DCEs) from being served by any other player.
DCI-Compliant DCE refers to the hardware and software that ensure a consistent and high-quality digital cinema experience. It includes items such as projectors, servers, and other related devices that can play back Digital Cinema Packages (DCPs).
UFO Moviez and Qube were significant players for the supply of DCI-Compliant DCE on lease or rent to the CTOs in India, the CCI stated in its Wednesday’s order.
The Commission, as per the statement, also found that UFO Moviez and Qube, through imposition of restrictions on supply of content in lease agreements entered into with CTOs, created barriers for players engaged in the provision of Post-Production Processing (PPP) services.
They blocked a significant portion of CTOs having DCI-Compliant DCEs from being served by any other player — an offence Section 3(4) of the Act.
The Commission directed UFO Moviez and Qube to not re-enter lease agreements with the CTOs imposing restrictions on supply of content from other parties.
It further held that the existing lease agreements with CTOs shall stand modified such that they do not impose restrictions on supply of content from parties other than UFO Moviez (and its affiliates) and Qube.
Published on April 18, 2025
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