The Supreme Court has revived the Competition Commission of India’s 2015 order penalizing the Kerala Film Exhibitors Federation (KFEF) and two of its office-bearers, P.V. Basheer Ahmed and M.C. Bobby, for anti-competitive practices that prevented Tamil and Malayalam films from being screened at certain theatres.
The CCI’s original order, issued on September 8, 2015, imposed a fine equivalent to 7% of the office-bearers’ salaries, following complaints that their actions were stifling competition. When the Federation continued similar practices, the CCI in a subsequent case barred the office-bearers from associating with KFEF for two years. The Federation challenged these orders, and the Competition Appellate Tribunal had partly sided with them, citing procedural gaps like the absence of a show-cause notice to the individuals.
The Supreme Court, in a bench led by Justices Manoj Misra and K.V. Viswanathan, disagreed. It found the original CCI notice sufficient under the Competition Act, stating the Director General’s report clearly identified the contraventions and the responsible individuals. “A clear opportunity was given to file objections. The notice dated 10.6.2015 fulfills the legal requirements,” the Court noted.
Justice Viswanathan emphasized that penalties alone had failed to curb anti-competitive conduct, highlighting that behavioral remedies were necessary to safeguard consumer interests and enforce the law. The Court restored the 2015 penalty and directives in full and has requested a compliance report on the same.
The case originated in 2012, when the Association of Cinema Theatres and Kerala Cine Exhibitors Association complained to the CCI about KFEF’s anti-competitive practices, setting in motion a legal saga that has now come full circle.