A controversy erupted recently when the makers of *Jolly LLB 3* refused to pay the Virtual Print Fee (VPF). This dispute led to PVR INOX discontinuing advance bookings for the Akshay Kumar-Arshad Warsi starrer, sending shockwaves throughout the film industry. Although the makers eventually made the payment, they clarified that it was done under protest.
Two weeks later, on September 30, 2025, the Competition Commission of India (CCI) initiated an investigation against PVR INOX Limited over allegations of abusing its dominant position by continuing to levy the Virtual Print Fee on film producers.
### Allegations of Discriminatory Practices
It was revealed that Yash Raj Films’ (YRF) upcoming releases, *Saiyaara* and *War 2*, could have been released without any VPF charges. This effectively meant that these two influential studios would avoid the burden of VPF, while hundreds of small and medium producers continued to pay the fee for every film screened across PVR theatres.
The Producers’ Guild argued that this practice was blatantly discriminatory, creating a two-tier system where only a select few benefited, leaving the rest of the industry at a disadvantage.
In its rejoinder, the Producers’ Guild stressed that such deals highlighted how PVR was leveraging its dominant market position to favor powerful production houses, denying similar concessions to others. This, the Guild argued, directly contravened the provisions of the Competition Act, which prohibits enterprises from imposing unfair and discriminatory conditions.
### PVR’s Defense
PVR defended its actions by stating that these concessions were offered only because competing exhibitors like Cinepolis were negotiating similar terms with the same studios. PVR claimed it risked losing these films if it did not match those offers.
As such, PVR argued that it was simply acting to “meet the competition,” a practice that under the Competition Act cannot be treated as discriminatory.
### Industry Impact and CCI Response
The CCI’s findings have sent ripples across the film trade. Had those agreements gone into effect, YRF’s 2025 releases, *Saiyaara* and *War 2*, could have enjoyed VPF-free releases, unlike most Indian films that continue to bear these costs.
Calling for a level playing field in film exhibition, the CCI has now ordered a full-fledged investigation by its Director General into PVR INOX’s conduct. This move has reignited the industry-wide debate on fairness and transparency in the Virtual Print Fee system.
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