CCI imposes penalty of Rs 52 Cr on BCCI
Published: Nov 29, 2017
NEW DELHI, NOV 29, 2017: THE Competition Commission of India (CCI) today imposed a fine of Rs. 52.24 crore on the Board of Control for Cricket in India (BCCI) for anti-competitive practices with respect to Indian Premier League (IPL) media rights. After a detailed investigation by the DG, CCI found that BCCI enjoys a dominant position in the market for organisation of professional domestic cricket leagues or events in India. Based on the nature of activities performed, BCCI has been held as an enterprise and thus, would come under the purview of the Competition Act, 2002.
While recognising the role of sports federation in taking measures to serve the integrity or development of the sport, CCI held that the restriction had no nexus to the legitimate interest of cricket in the country. Rather, it was pursued to enhance the commercial interest of the bidders of IPL broadcasting rights and the consideration in turn received by BCCI hence, held to be in contravention of section 4(1) read with section 4(2)(c).
The CCI directed that:
(a) BCCI shall cease and desist from indulging into the conduct that is found to be in contravention of section 4;
(b) BCCI shall not place blanket restriction on organisation of professional domestic cricket league or events by non-members. This shall, however, not preclude BCCI from stipulating conditions while framing or modifying relevant rules for approval or while granting specific approvals, that are necessary to serve the interest of the sport. Such changes shall entail norms that underpin principles of non-discrimination and shall be applied in a fair, transparent and equitable manner;
(c) Having done the above, BCCI shall issue appropriate clarification regarding the rules applicable for organisation of professional domestic cricket leagues or events in India, either by members of BCCI or by third parties, as well as the parameters based on which applications can be made and would be considered. Besides, BCCI shall take all possible measures to ensure that competition is not impeded while preserving the objective of development of cricket in the country ;
(d) BCCI shall file a report to the Commission on the compliance of the aforesaid directions from (a) to (c) within a period of 60 days from the receipt of CCI's order.