November 1, 2017 2:12 PM

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CCI finds conduct of major associations of cinema artists and producers in contravention of Competition Act

Fair trade regulator, Competition Commission of India, CCI has directed two film employee groupings, their affiliates and three film producers' associations to cease and desist from anti-competitive business practices. <br/><br/>An official release said, the directive has been passed against All India Film Employees Confederation, Federation of Western India Cine Employees (FWICE) and its affiliates. The regulator has also passed the order against Indian Motion Picture Producers Association, Film and Television Producers Guild of India and Indian Film and Television Producers Council. <br/> <br/>The CCI found that all these entities violated competition norms by entering into anti-competitive agreements. The order has come on a complaint filed by one Vipul Shah who had alleged that specific provision of a Memorandum of Understanding between FWICE and the three producers' associations was anti-competitive. It was also alleged that provisions such as those pertaining to member-to-member working, fixation of wages, charging for extra-shift were anti-competitive.<br/> <br/>After a detailed investigation, CCI found that the clause 6 of the pact that mandated that the producer can only engage with the members of FWICE and its affiliates violated competition norms. Among others, the directive to engage dancers and fighters in the ratio of 70:30 was also found to be in contravention of the competition law. <br/> <br/>In its order, the CCI noted that trade unions enjoy no immunity or exemption for their conduct which contravenes the provisions of the Competition Act. Thereby, it dismissed the plea of trade unions that they are governed only by the provisions of Trade Union Act, 1926.

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