Law: Competition Act, 2010

Section: 3

Competition Ordinance (XVI of 2010)---S. 3---Abuse of dominant position---Company was in the business of operating Pakistan's only multiplex cinema---Competition Commission of Pakistan received a complaint alleging a tying of movie tickets with food coupons---Commission wrote, letter to the company to provide information about the sale of cinema tickets contingent on the mandatory purchase of food coupons---Company submitted required information stating that it had started selling the coupon with the cinema ticket as a marketing strategy to make an inevitable price increase of the cinema ticket more acceptable to customers---By selling the movie tickets with food coupon as a tied product, company did in fact tie-in two separate products; the cinema tickets and food coupons---Customers who merely wanted to watch a movie, were also obliged to buy food coupons, even if they did not want to have any food at the cinema, which were two products, distinct from each other---Such was, in circumstances a violation of S.3(1)(2)(3)(c) of Competition Ordinance, 2010---Company offered to hold five free movie shows during the year for the under-privileged, in their biggest screen, comprising of 300 seats, in lieu of its inadvertent violation and such violation did not continue for long and was stopped prior to taking of cognizance by the Commission---Commission deemed it appropriate, under circumstances, to take a lenient view and accepted the company's offer of holding a minimum of five free shows for the under-privileged during the year 2011. ORDER 1. This Order will dispose of the proceedings pursuant to Show-Cause Notice No. 25 of 2010 dated July 29, 2010 (hereinafter "SCN") issued to Messrs Cinepax Limited (hereinafter "Cinepax" or "the Undertaking"), for prima facie violation of section 3(1) read with sections 3(2) and 3(3)(c) of the Competition Act, 2010 (hereinafter "the Act"). A. FACTUAL BACKGROUND 2. Cinepax is a company registered under the Companies Ordinance, 1984 and is in the business of operating Pakistan's only multiplex cinema in Jinnah Park, Rawalpindi and is an undertaking as defined in section 2(1)(q) of the Act. 3. The Competition Commission of Pakistan…

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