— Download the full CCI order here
The Competition Commission of India (CCI) on Thursday dismissed a complaint against BookMyShow, which alleged that the platform abused its dominant market position in the online movie ticketing space, creating an entry barrier for new players and jacking up the price of movie tickets for end-consumers.
Allegations against BookMyShow: The case dates back to 2022 and stems from a complaint filed by Vijay Gopal, founder of online movie ticketing portal Showtyme. He made the following allegations against BookMyShow:
1. The complaint alleged that BookMyShow has entered into “exclusive and refusal to deal” contracts with cinemas for a period ranging from two to five years, forcing cinemas to sell their movie tickets only through its platform. The complaint accused the platform of charging unreasonable and exorbitant fees under the guise of a convenience fee. The complainant alleges that this practice increased overall movie ticket prices and was “detrimental to consumers.”
2. Further, it was alleged that BookMyShow levies a convenience fee of Rs 25 per ticket sold on its platform, of which it shares 50% with multiplexes and 25% with standalone theatres as commission. According to Gopal, Showtyme charges a commission of Rs 11 per user, of which it shares 50% with cinemas. Despite the considerable price difference, cinemas were unable to work with Showtyme because BookMyShow allegedly provided loans and deposits to cinemas at “zero interest“.
Gopal claimed that he approached more than 30 cinema and theatre managers, as well as all multiplexes in Hyderabad, via email. Some confirmed they could not sell tickets through BookMyShow’s platform because they had taken monetary deposits and signed exclusive contracts with BookMyShow. This allegedly created a barrier to new entrants, such as Showtyme, and increased prices for end consumers.
3. The complaint claimed that BookMyShow holds at least a 90% market share in India’s movie ticket booking industry. The allegation claims that BookMyShow abuses its dominant position in violation of Section 4 of the Competition Act, 2022. The platform imposes “unfair and discriminatory conditions” on cinemas through exclusive deals that require them to sell all tickets only on BookMyShow. By entering exclusive agreements with cinema chains such as INOX PVR and Cinepolis, BookMyShow allegedly discourages fair competition. This, the complaint claims, breaches Section 4(2)(a), 4(2)(b), 4(2)(c), and 4(2)(d) of the Act.
What were the reliefs sought by Showtyme? In the wake of aforementioned allegations, the complainant sought the following directions from India’s antitrust regulator:
a) Declare the exclusive agreements between BookMyShow and cinemas as “illegal and anti-competitive.”
b) Impose a penalty under Section 27 of the Competition Act, 2002.
c) Direct BookMyShow under Section 28 of the Act to sell no more than 25% of…
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