Shri Vipul a. Shah v. All India Film Employee Confederation & Others
Case brief
What is this about?
The Competition Commission of India adjudicated a complaint alleging anti-competitive conduct by film industry trade unions and producer associations via a 2010 Memorandum of Understanding (MoU). The Commission held that these entities qualify as 'enterprises' and ruled that specific clauses restricting hiring of non-members, imposing wage rates, and warding off non-members via vigilance committees violated Section 3. It found that liability extends to affiliates and persisted even after the MoU expired. The Commission issued a cease and desist order against the organizations and quashed the offending clauses, deeming a penalty unnecessary due to the vulnerable status of daily wage earners.
What did the court decide?
Directions to various Producer Organizations (OPs) to cease and desist from anti-competitive conduct; a declaration that Clauses 6 and 18 of the MoU are anti-competitive and shall not form part of future agreements.