The Competition Commission of India (CCI) on 25th May imposed a penalty of Rs. 1 lakh each on 27 film producers on charges of colluding through a cartel to exploit cinema owners. The CCI found the producers guilty of entering into anti-competitive agreement.
In 2009, producers and distributors decided not to screen their films in multiplexes over issues of revenue-sharing. The Multiplex Association of India (MAI) had filed a complaint then against the United Producers & Distributors Forum. The CCI had found film producers entering into anti-competitive agreements to collectively stop exhibition of films in the multiplexes. It held that the producers had violated sections 3 and 4 of the Competition Act, 2002, which pertain to anti-competitive agreement and abuse of dominant position.