The Competition Commission of India (CCI) has fined UFO Moviez India Ltd and Qube Cinema Technologies Pvt Ltd a total of ₹2.69 crore for engaging in anti-competitive conduct. An investigation, prompted by complaints from PF Digital Media Services (now DNEG India) and producer Ravinder Walia, revealed that both companies used exclusive contracts with cinema owners to block competitors from offering digital cinema equipment and post-production services.
The CCI found that the companies tied equipment leases to mandatory use of their own content delivery services, limiting market access for rivals and violating India’s Competition Act. UFO Moviez and Qube were also found to have a dominant combined market share of over 88% in the DCI-compliant leasing space.
In addition to financial penalties—₹1.04 crore for UFO Moviez (including its affiliate Scrabble Digital) and ₹1.65 crore for Qube—the CCI ordered both firms to amend restrictive clauses in their contracts and halt such exclusionary practices going forward.