India News | CCI Suggests Self-regulations for Film Biz; Advises Industry Bodies to Refrain from Ban, Boycott

New Delhi, Oct 14 (PTI) Associations in the film industry must refrain from ban and boycotting non-members and look at alternate dispute resolution mechanisms to address disagreements between stakeholders, the Competition Commission suggested on Friday.

The fair trade regulator on Friday released a market study on the film distribution chain in India and mooted various self-regulations that could be followed by the industry.

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The watchdog has proposed self-regulations related to multiplexes and producers, Virtual Print Fee (VPF), stakeholders' associations and digital cinema.

According to the Competition Commission of India (CCI), multiplex should refrain from putting any restraint on trade in the exhibition of films that may impinge on producers' freedom of trade.

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Also, tailor-made arrangements should be preferred between multiplexes and producers in the pace of standard templates for contracting.

Citing stakeholders, the regulator said that in some quarters of the industry, certain types of anti-competitive conduct, such as bans and boycotts and prohibitions on working with non-members, are still being carried out by associations.

"Associations must refrain from engaging in bans and boycott and prohibiting industry from working with non-members... Associations must consider how alternate dispute resolution mechanisms, such as mediation can be institutionalised, to address any disagreement between stakeholders," the study said.

With respect to the Virtual Print Fee (VPF), the suggestion is that such money paid to a multiplex can be phased out first and later, the same can be phased out for single screens.

"Till the VPF sunset is decided and implemented, Digital Cinema Equipment (DCE) providers and producers should negotiate on mutually acceptable VPF charges and ensure that there are no disruptions in the exhibition of films on account of VPF," the study said.

VPF is a subsidy that producers/distributors pay to enable exhibitors to cover the cost of converting their analogue projectors into digital ones.

The study highlights some of the key competition issues in the film distribution chain as identified by stakeholders, the regulator said.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)