VPF row escalates as CCI orders probe into PVR INOX
A major dispute over the Virtual Print Fee (VPF) has taken a new turn after the Competition Commission of India (CCI) on September 30, 2025 directed a formal investigation into PVR INOX. The probe follows a heated episode earlier this year when the makers of Jolly LLB 3 refused to pay VPF, prompting PVR INOX to halt advance bookings for the Akshay Kumar–Arshad Warsi film. The producers eventually paid under protest, but the issue has since widened into a debate about fairness in film exhibition.
What triggered the CCI action?
The CCI’s order notes allegations that PVR INOX abused its dominant market position by continuing to levy VPF on film producers, while simultaneously reportedly striking special deals with big studios. Evidence submitted by the Film and Television Producers’ Guild of India suggests that Viacom18 and Yash Raj Films (YRF) had negotiated separate agreements with PVR that included “sunset clauses” to phase out VPF payments.
Allegations of a two-tier system
- Sunset clauses: The deals allegedly promised that VPF payments would phase out by December 2024 for YRF and Viacom18.
- Discriminatory impact: While those big studios could be exempted, hundreds of small and medium producers were still being charged VPF on every release across PVR screens.
- Producers’ Guild stance: The Guild argued this created a two-tier system that unfairly favoured powerful production houses and violated the Competition Act.
PVR INOX’s defence
PVR told the CCI the sunset clauses were not implemented and remained subject to renegotiation. The exhibitor said YRF and Viacom would be eligible only if they stopped paying VPF to other exhibitors or DCE providers. PVR also argued these concessions were offered to match competing terms—particularly from rivals like Cinepolis—and that it was simply trying to “meet the competition,” a defence the company says should not be treated as discriminatory under the law.
CCI’s preliminary findings and what comes next
The CCI found prima facie evidence of discriminatory conduct by PVR INOX and has directed its Director General to conduct a full-fledged investigation. The Commission highlighted that, had the deals been implemented, big releases such as YRF’s 2025 films Saiyaara and War 2 could have enjoyed VPF-free releases — unlike most other Indian films that still bear the cost.
The order has reopened an industry-wide conversation about transparency, fairness and the future of VPFs in film exhibition. Producers and smaller studios will be watching the CCI probe closely, as its outcome could reshape how costs are shared between exhibitors and content makers across India.
