Nearly 2 weeks after the VFX issue temporarily halted the advance booking of the much-awaited film Jolly LLB 3 in PVR and Inox, the Competition Commission of India (CCI), on September 30, 2025 directed an investigation against PVR INOX Limited over allegations of abusing its dominant position by continuing to levy the Virtual Print Fee (VPF) on film producers. Meanwhile, charges against UFO Moviez India and Qube Cinema Technologies have been dropped, as similar issues had already been dealt with in an earlier case.

Amid Jolly LLB 3–VPF controversy, PVR Inox faces investigation by Competition Commission of India

The case was initiated by the Film and Television Producers’ Guild of India, which represents nearly 170 producers. The Guild alleged that VPF, introduced in the mid-2000s to help theatres transition from analogue to digital cinema projectors, was supposed to be a temporary measure. Globally, Hollywood producers stopped paying VPF after 2018, but in India, the practice continues more than a decade after full digitisation of theatres in 2014.

According to the Producers’ Guild, this continued levy places a disproportionate burden on small and medium producers, while big Hollywood studios and select Indian players like Yash Raj Films and Viacom18 enjoy exemptions under negotiated “sunset clauses”; it’s a different matter that both these banners also had to pay VPF for their films this year, including Jolly LLB 3. Nevertheless, the Guild argued that this amounted to anti-competitive and discriminatory practices.

While UFO and Qube, India’s largest digital cinema equipment providers, were accused of locking exhibitors into exclusive contracts and collecting VPF without offering commensurate services, the CCI noted that these issues were already addressed in a 2020 order (Case No. 11 of 2020). Hence, it decided to close the matter against them under Section 26(2A) of the Competition Act.

The spotlight, however, fell squarely on PVR INOX, India’s largest multiplex operator with over 1,700 screens and around 30% of the national box office share. The CCI observed that PVR holds a dominant position in the “exhibition of films in multiplex theatres” market and prima facie evidence shows discriminatory treatment. It was revealed that nearly 70% of Hollywood releases were not charged VPF, while Indian producers were consistently billed.

Calling this conduct potentially violative of Section 4(2)(a) of the Competition Act, imposing unfair and discriminatory conditions, the CCI has ordered its Director General to launch a detailed probe into PVR’s practices, and submit its report in 90 days.

Also Read: EXCLUSIVE: Late night showdown – Jolly LLB 3 team pays VPF under protest; Akshay Kumar joins talks

More Pages: Jolly LLB 3 Box Office Collection , Jolly LLB 3 Movie Review

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