MRTPC restraints impugned restrictive trade practice of MAI

New Delhi, May 1 (UNI) The Monopolies and Restrictive Trade Practices Commission (MRTPC) today passed an order restraining the Multiplex Association of India and its members carrying on the impugned restrictive trade practices and directed them to file an affidavit of compliance within four days.

The MRTPC had issued orders on complaints of Mr Ramesh Sippy and four other film distributors.

The complainants had filed a complaint alleging that the Multiplex Association of India and its members are resorting to restrictive trade practices as defined under the Monopolies and Restrictive Trade Practices (MRTP) Act, 1969.

They have also filed an interim application seeking temporary injunction restraining the respondents from carrying on restrictive trade practice. It was alleged that certain clauses of the Multiplexes Association of India Terms Agreement, 2007, (MAI Agreement), are restrictive in nature.

As per the agreement Multiplex Chains shall negotiate terms with distributors on a national/regional basis and that no Multiplex Chains shall pay the distributors more than what has been agreed to in the MAI Agreement. It was alleged that the agreement is with the intention of forming a 'cartel' to pressurise the producers/distributors of films to accept the terms as dictated by the cartel of Multiplex Owners.

It was also alleged that the agreement restricts the members from entering into agreements with the distributors unless the same terms are extended to other members.

The agreement also states that the members deviating from the agreement are liable to be evicted from the membership and they would forfeit the Security Deposit.

The Commission found that the MAI Agreement in its present form is prima facie restrictive and is against the public interest and the continuation of such practice till the enquiry is completed could cost irreparable loss to the film industry and the applicants resulting in balance of convenience in favour of the applicants.

The Commission has, therefore, granted temporary injunction as prayed for nby the applicants.

UNI