Case Law Details
In re Vijay Gopal Vs Big Tree Entertainment Pvt. Ltd. (CCI)
The exclusive and restrictive agreements of BookMyShow with single screen cinemas and multiplexes, in conjunction, prima facie appear to have the potential of denying market access to competing platforms and potential entrants. The cinema theatres as well as the cinegoers alike are restricted in their choice of alternate ticketing platforms, during the working of the contracts that BookMyShow has with large number of theatres/ multiplex chains.
The Commission also notes that in case of agreement which is apparently entered into with single cinema theatre (such as), the reservation of seats during the term of agreement is likely to restrict the ability of cinema theatres to sell tickets during the currency of such agreements. The same has been reproduced hereinbelow:
The Commission further observes that BookMyShow in its response has stated that it has entered into exclusive agreements with certain cinemas and particularly those who would otherwise not have resources to make tickets available online through their own website or any other modes. A perusal of the clauses of the agreements with single screen cinemas indicate that BookMyShow has reserved the right of data collection, ownership and storage thereof without the cinemas having any right, title, interest to such data, though in the agreements that BookMyShow has with multiplexes, there is provision for sharing of data. In a recent publicly available interview4 of the founder of BookMyShow has been quoted as saying: “We have a loyal and sticky customer base and we know about their payment modes, other details, and movie preferences. We are sitting on India’s 80-90 million customers on top and data monetization is another piece, which is very integral to BookMyShow.”
The Commission is of the view that exclusivity relating to data ownership can increase the bargaining power of the platform over time. Data further strengthens and entrenches the network effects limiting inter platform competition. In a dynamic sense, this would imply that BookMyShow would earn monopoly rents, going forward. The aspect of exclusive ownership of and access to data by a dominant intermediary merits investigation.
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