Competition Commission Order Pertaining to Film Distributors Associations

There are film associations in states which bar studios to exploit satellite and home video rights in their respective regions. It constrains the market access of the studio for the unfettered distribution of its films on non-theatrical platforms. The Karnataka Film Chamber of Commerce (KFCC) allows the release of a non-Kannada movie in 21 thetares in the state. The Competition Commission of India (CCI) considers this anti-competitive. The Indian film distribution market is divided into 14 circuits with each of them having distributors’ or exhibitors’ association.Producers and distributors are required to become a member of these associations every time they want to release a film and follow the prescribed set of rules and regulations laid down by these associations. The CCI order stops these associations from compelling producers/ distributors/ exhibitors to become their members as a pre-condition for exhibition in their territories.It has lifted screen restrictions between regional and non-regional films. The distributor associations are planning to move the SC against the CCI order.

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