CCI penalises UFO Moviez and Qube Cinema for anti-competitive lease terms with cinema owners
The Competition Commission of India, by an order dated 16 April 2025, imposed monetary and non-monetary sanctions on UFO Moviez (with subsidiary Scrabble Digital) and Qube Cinema Technologies for violating Section 3(4) of the Competition Act.
Summary
The Competition Commission of India (CCI) passed an order on 16 April 2025 under Section 27 of the Competition Act, 2002, imposing monetary and non-monetary sanctions on UFO Moviez India Pvt (with its subsidiary Scrabble Digital Ltd) and Qube Cinema Technologies Pvt Ltd for contravening Section 3(4), through tie-in arrangements, exclusive supply agreements and refusal to deal. The CCI found that both, as significant suppliers of DCI-compliant digital cinema equipment on lease to cinema theatre owners, restricted the supply of content from other parties, creating barriers for post-production processing service providers. It directed them not to impose such restrictions and modified existing lease agreements. Penalties of ₹104.03 lakh on UFO Moviez (with Scrabble) and ₹165.8 lakh on Qube were imposed in Case No. 11 of 2020.
Key facts
- Order
- 16 April 2025, under Section 27, Competition Act 2002
- Contravention
- Section 3(4): tie-in, exclusive supply, refusal to deal
- Parties
- UFO Moviez (with Scrabble Digital); Qube Cinema Technologies
- Market
- DCI-compliant digital cinema equipment on lease to cinema owners
- Penalties
- ₹104.03 lakh (UFO Moviez); ₹165.8 lakh (Qube)
- Case
- No. 11 of 2020
Practice MCQs 2 questions
The CCI's April 2025 order against UFO Moviez and Qube Cinema found a contravention of which provision of the Competition Act, 2002?
Show answer
Correct answer: B — Section 3(4)
Section 3(4), through tie-in arrangements, exclusive supply agreements and refusal to deal; sanctions were imposed under Section 27.
Consider the following statements about the CCI order of 16 April 2025: 1. It related to the lease of DCI-compliant digital cinema equipment to cinema theatre owners. 2. A penalty of ₹165.8 lakh was imposed on Qube Cinema Technologies. Which of the statements given above is/are correct?
Show answer
Correct answer: C — Both 1 and 2
Both are correct. UFO Moviez (with Scrabble Digital) was fined ₹104.03 lakh and Qube ₹165.8 lakh.