Friday, March 16, 2012

CCI urges film bodies and trade associations to impose self-regulatory do’s and don’ts to align business practices with tenets of competition

CCI urges film bodies and trade associations to impose self-regulatory do’s and don’ts to align business practices with tenets of competition

Mumbai, March 16, 2012. The Competition Commission of India (CCI) has advised film bodies and trade associations to put in place self-regulatory do’s and don’ts to align their business practices with the tenets of competition and free play of market forces. Speaking at FICCI FRAMES 2012 here on Friday, Mr. Ashok Chawla, Chairman, CCI, urged entertainment and media enterprises and related trade associations to initiate competition compliance programme. Trade bodies could be used for price coordination or market allocation amongst member companies, he cautioned.
A competition compliance programme would include imparting awareness and training to employees who may engage themselves or are exposed to anti competitive conducts. It not only reduces the risk of contraventions, but also facilitates timely detections and can be useful in mitigating penalties by suggesting disclosure of information at the first opportunity. To make the programme really effective, a continuous review is essential. It also requires continuous backup from senior management which should be visible and reinforced from time to time.
He said CCI encourages member companies of trade associations and non-member companies to bring before the commission issues related to market practices so that the way forward could be found in a manner that does not disrupt market forces. The restriction of release of films other than theatres, he said, was an anti-competition practice, adding that “collective boycott in the market has no place in the competition lexicon.”

CCI, Mr. Chawla said, can initiate penal action in cases of anti-trust and ant-competition practices and restrictions on freedom of trade. Mergers & Acquisitions and Combinations that could affect the free play of market forces need mandatory approval of the CCI. The end objective of CCI was to ensure benefit to the consumers through efficiency, cost reduction and better quality of goods and services. -----------

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