The Tax Publishers

Act of Producers agreeing to Non-Release of Two Films on Same Date : Whether Legitimate Business Decision

Pragya Lalwani

This write up explains the decision of Competition Commission of India in case Kshitiz Arya v. Viacom 18 Media (P) Ltd. 2018 TaxPub (CL) 709 (Competition Commission of India) that a strategy of producers in not releasing two movies on same date/time was a legitimate business decision and not the anti-competitive practice.

1. Facts of the Case

As we all know, movie 'Padmavat' had faced severe protests pertaining to its historical accuracy from various social and religious groups in the country demanding a ban on its release. Many State Governments had passed notifications banning its release in their respective States however, subsequently, Supreme Court passed the order quashing such notifications. Finally the movie was scheduled to be released on 25-1-2018 and as per the trailer released, movie 'Padman' was also due for release on the same date. On 19-1-2018, Sanjay Leela Bhansali and Akshay Kumar through a joint conference announced the decision of makers of movie 'Padman' to postpone its release date from 25th January to 9th February on a request made by producer of film 'Padmavat'.

An Advocate Kshitiz Arya filed an information against the producers of films 'Padmavat' and 'Padman', viz., Viacom18 Media (P) Ltd. and others under section 19(1)(a) of the Competition Act, 2002 contending that the producers agreed to adjust the release date/time to avoid any loss of profits on account of competition between the two films, thus, was anti-competitive.

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