Competition Commission of India has rejected the complaint of Ajay
Devgan Films against ‘Yash Raj Films and others’ holding that later have not violated
the competition norms.
Ajay Devgan Films moved the Competition Commission (under section 3 and
4 of Competition Act, 2002) alleging abuse of dominant position by Yash Raj
Films in the back ground of the fact that at the time of the release of ‘EK Tha
Tiger’ (Salman Khan starrer) Yash Raj Films signed contract with single
screens putting condition that if they want to show ‘EK Tha Tiger” that they
will show ‘Jab Tak Hai Jaan’ (Sahrukh Khan Starrer) during Diwali, meaning
thereby they will not show any film other than ‘Jab Tak Hai Jaan’
See the entire order here:
Competition Commission of India may not have found Yash Raj Films violating
any competition norms, but if above conduct of Yash Raj Films tested on logical
reasoning, following main questions emerge in mind:
(1) Is not it a case that a production house which is giving block buster, be in a dominant position to exercise influence upon screens?
(2) ‘EK Tha Tiger’ was Salman Khan Starrer and expected to earn good
profit. Any screen would love not to miss chance and thus willingly or not
willingly would have signed a contract with Yash Raj Films to show (only) ‘Jab
Tak Hai Jaan’ (Sahrukh Khan Starrer) during Diwali, only to get the rights
to show ‘EK Tha Tiger’
(3) By putting the aforesaid condition, is not it a case that Yash Raj
exercised influence on single screens?
(4) Is not it a case that if such practice is allowed all big production
houses shall wipe out the small one?
(5) Is not it a case that if such practice is allowed viewer’s option
will be curtailed?
(6) Is not it a case where by putting such restrictive clauses big
production houses shall restrict the small one or other production houses to
compete in open market?
(7) Is not it a case where Yash Raj practiced restrictive practice?
(i)
Curtailed
choices for the single screens? Single screens are left with no option but to
show ‘Jab Tak Hai Jaan’
(ii)
Viewers
are left with little option but to see ‘Jab Tak Hai Jaan’? [Majority viewer chooses the option of nearby
theatre]
(8) Is not it a case that by putting the aforesaid condition, Yash Raj
created a barrier for Ajay Devgan Films and others to compete?
(9) Now a day there has been trend in industry to release block buster
films at occasion of Diwali (As during festive time viewership is expected to increase).
By blocking screens in the above manner (seemingly putting condition that I
will give you ‘EK Tha Tiger’ only when you will only show ‘Jab Tak Hai Jaan’), is
not it a case where competition is curtailed?
Disclaimer: I am fan of Ajay Devgan.