16 APRIL 2025

The Competition Commission of India (CCI) has imposed monetary and non-monetary sanctions on UFO Moviez India Pvt. Ltd., its subsidiary Scrabble Digital Ltd., and Qube Cinema Technologies Pvt. Ltd. for violating Section 3(4) of the Competition Act, 2002. The decision, issued on April 16, 2025, addresses concerns around tie-in arrangements, exclusive supply agreements, and refusal to deal.

The Commission found that both UFO Moviez and Qube, key players in leasing Digital Cinema Initiatives-Compliant Digital Cinema Equipment (DCI-Compliant DCE) to cinema theatre owners (CTOs) in India, had included restrictive clauses in their lease agreements. These clauses limited the supply of post-production processing (PPP) services and restricted CTOs from accessing content through other service providers, thereby creating significant entry barriers in the market.

As part of the ruling, CCI has directed both companies to cease including such restrictive terms in future agreements and to modify existing contracts accordingly. Additionally, monetary penalties of ₹104.03 lakh on UFO Moviez (including Scrabble Digital) and ₹165.8 lakh on Qube have been levied, based on the severity of the contraventions and related factors.

The order reinforces CCI’s commitment to promoting fair competition and ensuring an open, accessible marketplace in India’s film exhibition sector.