CCI slaps Rs52-cr fine on "monopolistic" BCCI
30 Nov 2017
In a development that would help loosen the monopolistic hold of the Board of Control of Cricket in India (BCCI) on cricket in the country the Competition Commission of India (CCI) has upheld a 2013 order directing the sports body to cease and desist from anti-competitive conduct and a Rs52.24 crore fine imposed on it.
In its IPL media rights agreement, the BCCI had assured broadcasters that it "shall not organise, sanction, recognise, or support during the rights period another professional domestic Indian T20 competition that is competitive to the league, for a sustained period of ten years."
This, the CCI has found this to be in contravention of the provisions of Section 4(1) read with Section 4(2)(c) of the Competition Act, 2002.
The CCI had issued an order against BCCI for abuse of dominant position for imposing restrictions that deny access to the market for organisation of professional domestic cricket league / events.
After a detailed investigation by the DG, CCI has found that BCCI enjoys a dominant position in the market for organisation of professional domestic cricket leagues/ 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 Act.
BCCI, which makes crores of rupees in annual profits, argued that it was a 'not-for-profit' organisation and therefore doesn't come under the ambit of the CCI.
While recognising the role of sports federation in taking measures to serve the integrity or development of the sport, CCI held that the impugned restriction had no nexus to the legitimate interest of cricket in the country.
Rather, the restriction was pursued to enhance the commercial interest of the bidders of IPL broadcasting rights and the consideration in turn received by BCCI. Therefore, the impugned restriction has been held to be in contravention of Section 4(1) read with Section 4(2)(c) of the Act.
Accordingly, CCI directed BCCI to cease and desist from indulging in the conduct that is found to be in contravention of Section 4 of the Act – that BCCI cannot place blanket restriction on organisation of professional domestic cricket league / events by non-members. This shall, however, not preclude BCCI from stipulating conditions while framing / modifying relevant rules for approval or while granting specific approvals, that are necessary to serve the interest of the sport, CCI noted.
However, such changes shall entail norms that underpin principles of non-discrimination and shall be applied in a fair, transparent and equitable manner, it added.
BCCI has been asked to issue appropriate clarification regarding the rules applicable for organisation of professional domestic cricket leagues / 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 has been asked to take all possible measure(s) to ensure that competition is not impeded while preserving the objective of development of cricket in the country .
The regulator has asked BCCI to file a report on the compliance of the directions from within a period of 60 days from the receipt of CCI's order.
