The Competition Commission of India (CCI) has initiated an inquiry into PVR INOX following complaints from the Film and Television Producers Guild of India. The complaint alleges that PVR INOX continues to collect a “virtual digital fee” (VDF) from film producers, even though cinemas have already completed the shift from analog to digital projection systems.
The fee was introduced in 2007 to support the upgrade to digital equipment. Producers say that continuing to charge it is unnecessary and imposes extra costs on filmmakers, particularly independent and smaller production houses.
The CCI has found preliminary signs that the practice could violate competition laws and has instructed its Director General to conduct a detailed investigation. A report is expected within 90 days. The findings could affect how cinema chains charge fees and interact with film producers in India.
PVR INOX was formed after the merger of PVR Cinemas and INOX Leisure in 2023 and is one of the largest multiplex operators in the country. The company has not issued a public statement regarding the investigation.
Industry analysts note that the investigation may influence how fees and agreements are structured across the sector in the future.
