CCP goes easy on Cinepax

Cinema to hold five free shows for underprivileged.

KARACHI:

A bench of the Competition Commission of Pakistan (CCP) comprising Rahat Kaunain Hassan, Chairperson and Dr Joseph Wilson, Member, has passed an order in the case of Cinepax Limited.

Taking a compliance-oriented approach and while finding a past violation, the bench agreed to accept Cinepax’s offer to hold five free movie showings for the underprivileged on their biggest screen, in lieu of their violation, CCP said in an announcement on Friday.

Earlier, CCP had received a complaint alleging a ‘tie-in’ of movie tickets with food coupons ie sale of cinema tickets contingent on the mandatory purchase of food coupons worth Rs50 each, thus violating Section 3(3)(c) of the Competition Act, 2010.

Following a preliminary investigation, CCP called a hearing on March 1 with Cinepax representatives, who submitted that the tie-in had been done to benefit the public as well as to make the price increase from Rs300 to Rs350 more acceptable. They contended that the tie-in lasted for six months after which it was just the movie ticket sold at Rs350 and this practice stopped on April 7, 2010 before CCP took cognisance of the matter.

Cinepax also argued that they were in fact not dominant in the relevant market as there were 11 other cinemas operating in the twin cities of Rawalpindi and Islamabad, and therefore not subject to a Section 3 violation.

Upon consideration of Cinepax’s submissions, CCP held that it was inclined to take a lenient approach given the tie-in had ended before it initiated an inquiry.

Published in The Express Tribune, April 2^nd,  2011.