Jolly LLB 3 Controversy: PVR Inox Under Investigation by Competition Commission of India
Nearly two weeks after the advance bookings for the highly anticipated film Jolly LLB 3 were temporarily suspended due to VFX issues, the Competition Commission of India (CCI) has launched an investigation into PVR INOX Limited. The inquiry, initiated on September 30, 2025, stems from allegations that the company has been abusing its dominant market position by continuing to charge a Virtual Print Fee (VPF) to film producers. In a related development, charges against UFO Moviez India and Qube Cinema Technologies have been dismissed, as similar concerns were previously addressed in an earlier case.
Background of the VPF Controversy
The investigation was prompted by a complaint from the Film and Television Producers’ Guild of India, which represents approximately 170 producers. The Guild contends that the VPF, originally introduced in the mid-2000s to facilitate the transition from analogue to digital cinema projectors, was intended to be a temporary measure. Despite the full digitization of theatres in India by 2014, the practice of charging VPF has persisted. In contrast, Hollywood producers ceased paying this fee after 2018, raising questions about its continued application in the Indian film industry.
The Producers’ Guild argues that the ongoing VPF charges disproportionately impact small and medium-sized producers. In contrast, larger studios, including major Hollywood entities and prominent Indian firms like Yash Raj Films and Viacom18, have secured exemptions through negotiated “sunset clauses.” However, it is noteworthy that even these larger studios had to pay the VPF for their films this year, including *Jolly LLB 3*. The Guild claims that these practices are anti-competitive and discriminatory.
Allegations Against PVR INOX
The CCI has focused its investigation on PVR INOX, which operates over 1,700 screens and commands around 30% of the national box office share. The commission has identified PVR as holding a dominant position in the multiplex film exhibition market. Preliminary evidence suggests that PVR has engaged in discriminatory practices, as nearly 70% of Hollywood releases have not been charged the VPF, while Indian producers consistently face these fees.
The CCI’s findings indicate that such conduct may violate Section 4(2)(a) of the Competition Act, which prohibits imposing unfair and discriminatory conditions. As a result, the commission has instructed its Director General to conduct a comprehensive investigation into PVR’s practices, with a report expected within 90 days.
Previous Cases and Current Developments
In the same context, UFO Moviez India and Qube Cinema Technologies were previously accused of locking exhibitors into exclusive contracts and collecting VPF without providing adequate services. However, the CCI determined that these issues had already been resolved in a 2020 ruling, leading to the closure of the case against these companies under Section 26(2A) of the Competition Act.
The ongoing scrutiny of PVR INOX highlights the complexities of the film industry’s financial landscape, particularly regarding the treatment of domestic producers compared to their international counterparts. As the investigation unfolds, the implications for the broader film industry and its stakeholders remain to be seen.
Implications for the Film Industry
The CCI’s investigation into PVR INOX could have significant ramifications for the Indian film industry. If the commission finds that PVR has indeed engaged in anti-competitive practices, it may lead to changes in how VPF is applied across the industry. This could provide relief to smaller producers who have long felt the financial strain of these fees.
Moreover, the outcome of this investigation may prompt a reevaluation of the existing agreements between multiplex operators and film producers. It could also encourage a more equitable distribution of costs within the industry, fostering a healthier environment for all stakeholders involved. As the situation develops, the film community will be closely monitoring the CCI’s findings and any subsequent actions taken against PVR INOX.
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