CCI Penalises UFO Moviez, Scrabble, and Qube for Anti-Competitive Conduct

The Competition Commission of India (CCI), through its order dated April 16, 2025, has imposed penalties on UFO Moviez India Ltd., its subsidiary Scrabble Digital Ltd., and Qube Cinema Technologies Pvt. Ltd. for engaging in anti-competitive practices in the market for the lease of Digital Cinema Equipment (DCE) and provision of Post-Production Processing (PPP) services.

The CCI found that UFO and Qube, both holding significant market power, engaged in tie-in arrangements and imposed exclusive supply obligations on cinema theatre owners (CTOs). UFO restricted CTOs from accessing content not processed by Scrabble, while Qube allowed only its own leased content to run on its DCEs. These actions were held to be in violation of Sections 3(4)(a), 3(4)(b), and 3(4)(c) of the Competition Act, 2002.

Finding that the conduct resulted in an appreciable adverse effect on competition (AAEC), the CCI imposed penalties of INR 1.04 crore on UFO and Scrabble, and INR 1.65 crore on Qube.