The Competition Commission of India (CCI) on Thursday dismissed a complaint against BookMyShow‘s parent Big Tree Entertainment, which alleged abuse of dominant position in the online movie ticket market.
The complainant alleged that BookMyShow (BMS) entered into exclusive arrangements with cinema operators that restricted them from associating with competing online ticketing platforms.
According to the complainant, such arrangements allegedly created a barrier for new ticketing platforms from competing in the market and enabled the platform to impose unfair conditions on consumers, including the charging of convenience charges.
After considering the investigation carried out by the Director General (DG), the regulator defined the relevant market as the ‘market for online intermediation services for booking of movie tickets in India’.
The Commission observed that the opposite party (BookMyShow) holds a dominant position in the market, noting its strong presence over the years due to its extensive network of cinema partners, strong brand recall and large consumer base.
The regulator also observed that the presence of other online ticketing platforms like Paytm, Justickets and Amazon indicates that the market cannot be considered effectively foreclosed for new competitors as they continue to operate in the segment.
CCI noted that the complainant failed to provide sufficient evidence to demonstrate that the alleged arrangements between BookMyShow and cinema operators resulted in the denial of market access or exclusion of competing platforms, as per the order.
Therefore, the regulator is unable to come to a conclusion that BookMyShow has abused its dominant position by imposing terms and conditions, which have the impact of foreclosing the market and denying market access to other players in contravention of the provisions of Section 4(2)(c) of the Act.
Section 4 of the competition norms pertains to abuse of dominant position.
“The Commission is of the view that though the OP enjoys dominant position in the relevant market of ‘market for online intermediation services for booking of movie tickets in India,’ however, no case of contravention of the provisions of Sections 4(2)(a)(i), 4(2)(b)(i) and 4(2)(c) of the Act is made out against the OP in the present matter,” CCI said in the order.
Accordingly, the matter is directed to be closed forthwith, it added. PTI
