CCI turns spotlight on PVR Inox over VPF charges. Detailed Inside. 

The long-running debate over Virtual Print Fee has once again shaken the film industry. This time, the matter has reached the Competition Commission of India, which has opened an investigation against PVR Inox on charges of unfair trade practice.

The issue gained attention after the advance booking of Jolly LLB 3 briefly came to a standstill earlier this month. Producers alleged that India’s largest multiplex chain has continued to collect VPF even though the digital transition of cinemas was completed years ago. In fact, Hollywood studios stopped paying this fee globally back in 2018, but in India, the burden still falls on domestic filmmakers.

According to the Producers Guild of India, which represents over 150 producers, the fee has become a heavy cost especially for small and medium budget films. What makes the issue even more sensitive is that big banners and Hollywood releases often get waivers or exemptions, while others are forced to pay. The Guild believes this system is unfair and hurts healthy competition.

For PVR Inox, the matter is more complex. The company runs more than 1700 screens across the country and is struggling with rising costs after the pandemic. Multiplexes claim that they are even willing to absorb the VPF, but then producers must agree to reduce the distributor share. Theatres say they are finding it extremely difficult to manage heavy rentals, rising operational expenses and the slow recovery of audiences after Covid.

Earlier, similar allegations were made against UFO Moviez and Qube Cinema. However, the competition regulator has dropped those charges since the matter was already addressed in an older order. This time the focus is firmly on PVR Inox, which controls a significant share of the multiplex market and has the power to influence release strategies.

The CCI has directed its investigation arm to conduct a detailed probe and submit findings within three months. The outcome could decide how costs are shared between producers and theatres in the future, and whether the decades old VPF finally comes to an end in India.