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Exclusive agreements with theatres can reduce competition: CCI calls for DG investigation against BookMyShow

While determining the relevant market as ‘market for online intermediation services for booking of movie tickets in India,’ the Commission noted that the services provided by online platforms for booking of movie tickets cannot be equated to online sites of multiplexes/single screen cinemas or even by the box office.

The Commission relied on news reports to note that in January-March 2017, BookMyShow’s share in online booking of movie tickets was 78%, followed by PayTM with a market share of 13%. As per a December 2018 media report, BookMyShow’s market share in movie ticketing was between 70%-75%, as claimed by its founder.

Establishing BookMyShow’s dominance in the relevant market, the CCI noted,

“The ability of BookMyShow to enter into exclusive agreements further corroborates its position of strength and the various provisions in its agreements with cinema theatres/multiplexes, indicate its superior bargaining power in deciding contractual terms. These factors, taken together, prima facie appear to substantiate the dominant position enjoyed by BookMyShow in the relevant market.”

Source: Barandbench

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