It said in a statement that antitrust regulators fined UFO Moviez and Scrabble at Rs 104 crore and nearly Rs 166 crore on Qube. Qube is also a supplier of digital movie equipment.
“The Commission found that UFO Movies and Qube created obstacles for players engaged in post-production processing services through content supply restrictions in lease agreements with the CTO (the owner of the cinema),” the regulator said in a statement.
They also “blocked many cinema owners” which have digital cinema devices that meet the standards of the Digital Film Initiative (Producers Association), which was provided by any other participant, according to the statement.
Regulators found UFO movies, Scrabble and Qube in Section 3(4) of the Competition Act. This section essentially involves agreements between enterprises or personnel at different levels of production chains in different markets, including collocation arrangements and exclusive supply or allocation agreements.
Regulators instructed UFO Moviez and Qube to “not reimpose restrictions on content from other parties” with cinema owners. The lease agreement with the cinema owners has been modified “so much so that they do not limit the supply of other parties to the limits of the supply of other parties come from UFO Moviez (UFO Moviez (and its neighbors) and its affiliates and Qube) and Qui save of qui”, cci’cc cc cc cc cc cc cc’cc”
