The ruling came on a complaint filed by Vijay Gopal, proprietor of Vanila Entertainments, who runs the ticket booking platform Showtyme. He alleged that BookMyShow had entered into exclusive agreements with cinemas and multiplex chains, preventing rival ticketing platforms from accessing the market.
The Competition Commission of India has held that Big Tree Entertainment, which runs the online movie ticketing platform BookMyShow, is a dominant player in the online movie ticket booking market but has not abused its position under the Competition Act, 2002, according to a report by Bar and Bench.
The ruling came on a complaint filed by Vijay Gopal, proprietor of Vanila Entertainments, who runs the ticket booking platform Showtyme. He alleged that BookMyShow had entered into exclusive agreements with cinemas and multiplex chains, preventing rival ticketing platforms from accessing the market.
However, the CCI rejected the allegation, stating that there was no evidence to conclude that the platform imposed terms that foreclosed the market or denied access to other players in violation of Section 4(2)(c) of the Act.
The regulator defined the relevant market as the “market for online intermediation services for booking of movie tickets in India”, noting that online platforms offer features such as seat comparison, digital payments, cancellations and promotional offers that are not available at traditional box offices.
While the Commission observed that BookMyShow entered the market early and built a wide network of cinema partners and users, giving it a leadership position, it also noted that the market remains dynamic with players such as Paytm, Justickets and Amazon present in the segment.
The CCI also dismissed allegations related to seat reservations, customer data ownership and revenue-sharing on convenience fees, saying multiplexes and single-screen cinemas are not similarly placed and that commercial arrangements can vary based on negotiations and scale of operations.
It further said the number of exclusive arrangements with cinemas was limited compared with the total number of screens in India and did not amount to substantial market foreclosure.
Based on these findings, the Commission concluded that BookMyShow had not violated the abuse of dominance provisions under Section 4 of the Competition Act and closed the proceedings.
Source: CNBC-TV18
