The Competition Commission of India (CCI), under the provisions of Section 27 of the Competition Act, 2002, has taken stringent action against UFO Moviez India Pvt. (UFO Moviez), its subsidiary Scrabble Digital Ltd., and Qube Cinema Technologies Pvt. Ltd. (Qube) for engaging in anti-competitive conduct. In an order dated April 16, 2025, the Commission imposed both monetary penalties and non-monetary corrective measures on the companies for contravening Section 3(4) of the Act.
The investigation revealed that UFO Moviez and Qube were prominent players in the market for leasing or renting Digital Cinema Initiatives-Compliant Digital Cinema Equipment (DCI-Compliant DCE) to Cinema Theatre Owners (CTOs) in India. It was found that these companies imposed restrictive conditions in their lease agreements, including tie-in arrangements, exclusive supply agreements, and refusal to deal. These practices created significant barriers for other providers of post-production processing (PPP) services, effectively locking out competitors and restricting CTOs from accessing content from alternative suppliers.
As part of its order, the CCI directed UFO Moviez, Scrabble Digital Ltd., and Qube to cease entering into agreements with CTOs that imposed restrictions on content supply. Additionally, existing lease agreements were mandated to be modified, ensuring that CTOs are not restricted from sourcing content from other parties.
Taking into account the severity of the violations and balancing mitigating and aggravating factors, the CCI levied monetary penalties of INR 10.403 million on UFO Moviez and Scrabble Digital Ltd. collectively, and INR 16.58 million on Qube. These penalties highlight the Commission’s commitment to curbing anti-competitive practices and ensuring a level playing field in the industry.
The order underscores the CCI’s continued vigilance in safeguarding fair competition and promoting transparency in business practices. A public version of the detailed order is available for reference on the official CCI website.
