CCI Imposes Penalties on UFO Moviez and Others for Anti-Competitive Practices

The Competition Commission of India (CCI) has imposed penalties on UFO Moviez India Limited (₹1.04 crore), its subsidiary Scrabble Digital Limited, and Qube Cinema Technologies Private Limited (₹1.66 crore) for violating the  Competition Act, 2002.

These companies are significant players in the supply of digital cinema on lease/rent to Cinema Theatre Owners (CTOs). 

The CCI found that the companies entered into lease agreements with CTOs that imposed restrictions on the supply of content from parties other than their own companies.

These clauses were deemed anti-competitive, as they hindered other post-production service providers from entering the market, reducing fair competition. The parties were directed to cease such practices.