Fair trade regulator CCI has rejected actor-producer Ajay Devgn's complaint alleging abuse of dominant position by Yash Raj Films, saying that there are no violations of competition norms in the case.
Ajay Devgn Films (ADF) said it has appealed against the Competition Commission of India's (CCI) ruling.
"We are shocked by the rejection of our legitimate case by the CCI. We have approached Appellate Tribunal against the order," an ADF spokesperson said in a statement today.
ADF had moved the Commission, alleging that YRF was using its dominant position to ask exhibitors to dedicate more screens to its own upcoming release, Shahrukh Khan-starrer Jab Tak Hai Jaan, affecting Devgn's film Son of Sardaar.
Both the films are releasing on same day — November 13.
"The Commission is prima facie of the opinion that there is no contravention of the provisions of the (Competition) Act in the present case," it said in an order dated November 5.
The CCI said Devgn did not place on record any data related to market share or economic strength to show how the YRF was in a dominant position in the relevant market.
"It was argued by the counsels for the informant that the opposite parties were dominant because Opposite Party was big banner production house and had big name and had given several block buster films.
"No enterprise can be considered dominant on the basis of big name. Dominance has to be determined as per law on the basis of market share, economic strength and other relevant factors stated under... the Competition Act," the order said.
The Delhi High Court on Friday asked the CCI to "expeditiously" decide on Ajay Devgn Films' complaint that its Son of Sardaar was not getting enough single-screen theatres as Yash Raj Films has used its dominant position for better exhibition of Jab Tak Hai Jaan.
According to the Commission, ADF's grievance arose due to fear that it would not get enough theatres for Son of Sardaar because of pact of single screen theatres with Yash Raj Films at the time of releasing Ek Tha Tiger.