Monday , July 23 2018

CCI finds malayalam film industry unions guilty

Fines imposed on organisations and their office-bearers of malayalam film industry

malayalam-film-stars

malayalam film industry is in a significant order that might change the game, the Competition Commission of India (CCI) that has found the Association of Malayalam Movie Artists (AMMA), FEFKA Directors’ Union, Film Employees Federation of Kerala (FEFKA), and FEFKA Production Executives’ Union guilty of anti-competitive conduct.

The organisations and their office-bearers have been imposed fines on the basis of their respective incomes. The four-member of CCI, comprising of Sudhir Mital, S.L. Bunker, U.C. Nahta and Justice G.P. Mittal, ordered those organisations and their office-bearers to cease and desist from indulging in practices that are found to be anti-competitive in the terms of the provisions of Section 3 of the Competition Act, 2002.

The penalty that has imposed a commission of Rs.4,00,065, Rs.85,594, Rs.3,86,354 and Rs. 56,661 on AMMA, FEFKA, FEFKA Directors’ Union, and FEFKA Production Executives’ Union, respectively.

The fines were calculated at the rate of 5% based on the average income.

The CCI has also imposed a penalty of about Rs.51,478, Rs.19,113, Rs.66,356, Rs.32,026, and Rs.27,737 on innocent, Sibi Malayil, B. Unnikrishnan, Edavela Babu, and K. Mohanan respectively in the capacity them as office-bearers of these organisations.

89-page order

The commission has delivered its 89-page order on a petition filed by T.G. Vinayakumar , (Informant), who supposed that the ban imposed on him by these organisations had affected fair competition in the market, the interests of customers and the freedom of trade that had carried on by other participants by limiting and restricting the market to make  in contravention of the provisions of Section 3(3) of the Act.

The informant of further alleged that the opposite parties have been making these allegations by virtue of their dominant position in the Malayalam film industry and wanted to control and abuse it within the meaning of Section 4 of the Competition Act.

The new chapter has been opened by CCI in order to affect the entertainment industry, which has been under mix after high voltage unionisation for the last several years.

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