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CCI orders probe into PVR Inox over virtual digital fee charged to producers
Film Guild alleges unfair burden on small and mid-sized filmmakers; investigation to be completed in 90 days
PVR Inox scaled up its year-on-year revenue by 23.4% , fuelled by blockbuster success of 10 films during the last quarter.
The Competition Commission of India (CCI) has ordered an investigation into multiplex major PVR Inox following allegations that it continues to levy the virtual digital fee (VDF) on film producers, charges that were meant to be phased out years ago.
The probe follows a complaint by the Film and Television Producers’ Guild of India, which argued that the country’s largest cinema chain is engaging in anti-competitive practices by collecting the fee. The VDF was introduced in 2007 to finance the costly transition from analogue projectors to digital cinema systems. While Hollywood studios stopped paying the charge nearly a decade after completing the switch, Indian producers say they are still forced to bear the expense.
The Guild said the continued levy unfairly penalises smaller and mid-sized producers, restricting their ability to compete with larger players.
Read more: PVR INOX’s Rs 40 cr cost cuts, digital push lift ad income 17% in Q1, says Sanjeev Kumar Bijli
In its order issued September 30, as per media reports, the CCI observed a prima facie violation of competition rules and directed its Director General (DG) to conduct a detailed probe. The DG has been asked to submit findings within 90 days and examine whether company executives were directly responsible for the alleged anti-competitive behaviour.
The CCI stressed that its observations should not be viewed as a final decision, with the investigation to proceed independently.
Meanwhile, in its financial performance, PVR Inox narrowed its consolidated loss to ₹54 crore in Q1FY26, compared to a ₹1,790 crore loss in the same period last year. Revenue from operations grew 23% year-on-year to ₹1,469 crore, driven by a stronger slate of films and higher footfalls, while other income rose 13% to ₹32.4 crore.
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