Compulsory registration with trade associations before exhibition of product is anti-competitive in terms of the provisions of Section 3 of the Competition Act

CLR Editorial Notes: In the present case, the informant (M/s. Shri Ashtavinayak Cine Vision Limited) has alleged that local association of distributors and exhibitors by making it compulsory for every film distributor to become their member and/ or register its film with the associations before the exhibition of such films, are strengthening their dominant position and imposing undue and unfair restrictions against the various stakeholders in the film industry. The informant has also alleged that the associations are acting like a cartel of distributor members for the benefit of their members at the cost of imposing undue restrictions against the others who are not their members such as the directors and producers of the films. The CCI has observed that the acts and conduct of the association have caused appreciable adverse effect on competition The CCI has held that the compulsory registration of the film with the concerned trade associations is anti-competitive in terms of the provisions of Section 3 of the Competition Act.


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