The Competition Commission of India (CCI), in its order on Monday, said that the conduct of BookMyShow vis-a-vis the alleged contravention of the provisions of Section 4 of the Competition Act, 2002 required an investigation by its Director General (DG).
It was dealing with a petition filed by Vijay Gopal, founder of an online movie ticketing portal Showtyme, registered in the name of Vanila Entertainments in Hyderabad.
Convenience fee
His allegation is that the BookMyShow collects ₹25 per ticket as convenience fee from the consumers, seeking to avail the facility of online booking of tickets and shares 50% of it as commission (up to ₹12 to ₹14 per ticket) with the multiplexes. However, it gives a commission up to ₹6 to ₹8 per ticket in case of standalone and single screen theatres.
On the other hand, Showtyme, offers up to ₹5 to the multiplexes and theatres out of ₹11 being charged by it, and would keep the rest for running its operations. In spite of this, the multiplexes and theatres are unable to associate with the Showtyme due to cash loans/monetary deposits given by the BookMyShow to them on zero interest.
DG to conduct investigation
After hearing the matter, the CCI directed its DG to conduct an investigation under the provisions of Section 26(1) of the Competition Act and submit a report within 60 days from the receipt of the present order.
The main prayer was to direct BookMyShow to sell not more than 25% of its tickets of any multiplexes/theatres in Telangana and Andhra Pradesh, and not more than 50% of the tickets in the rest of India on its platform.
