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2013 (4) TMI 161 - COMPETITION COMMISSION OF INDIAAnti-competitive agreements - Information has been filed under section 19(1)(a) of the Competition Act, 2002 informant alleging inter alia contravention of the provisions of sections 3 and 4 of the Act. It is alleged by the informant that the opposite party associations make it compulsory for every film distributor to become their member and/or register his/its film with them before the exhibition of such film. A distributor who refuses to become a member with them is not allowed to distribute and exhibit his/its film in the territory which is governed/regulated by the respective opposite party association. It is averred by the informant that the opposite party no. 1 directed its members not to release the film 'Mausam', in its territory unless the claim of its member of Rs.2.5 crores was settled and convened its other members to intervene in the distribution of the film until recovery of dues. It is, thus, alleged that the opposite party associations acted malafidely and arbitrarily in boycotting the film with an effort to secure a claim of their member. Held that - On a plain reading of the aforesaid circulars/letters, it is evident that the opposite party associations through these circulars/letters tried to limit/control the supply of the film in contravention of the provision of section 3 (1) read with section 3(3)(b) of the Act. By virtue of the provisions contained in section 3(3) of the Act, any agreement entered into between enterprises or associations of enterprises or persons or associations of persons or between any person and enterprise or practice carried on, or decision taken by, any association of enterprises or association of persons, including cartels, engaged in identical or similar trade of goods or provision of services, which (a) directly or indirectly determines purchase or sale prices; (b) limits or controls production, supply, markets, technical development, investment or provision of services; (c) shares the market or source of production or provision of services by way of allocation of geographical area of market, or type of goods or services, or number of customers in the market or any other similar way; (d) directly or indirectly results in bid rigging or collusive bidding, is presumed to have an appreciable adverse effect on competition. The Commission directs the Opposite Parties to cease and desist from the practices of pressurizing the distributors to settle the monetary disputes with its members and also imposed penalty to ensure effective functioning of the market.
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