The recent controversy over the Virtual Print Fee (VPF) during the release of Jolly LLB 3 has led to a major development. The Competition Commission of India (CCI) has now ordered a formal investigation into PVR Inox, India’s largest multiplex chain. The investigation, ordered on September 30, 2025, will look into allegations that PVR Inox is misusing its powerful position in the market.
This move comes just two weeks after the advance bookings for Jolly LLB 3 were temporarily halted at PVR Inox cinemas due to a dispute over the VPF charges. The issue has been a point of conflict between producers and multiplexes for years, and it seems the CCI is now ready to take a closer look.
What Is The VPF Issue?
For those who don’t know, the Virtual Print Fee (VPF) was a charge introduced many years ago to help cinema owners switch from old film projectors to new digital ones. The idea was that producers would help pay for this new technology for a limited time. However, the Film and Television Producers’ Guild of India, which represents about 170 producers, filed a complaint arguing that this “temporary” fee is still being charged, even though theatres in India became fully digital way back in 2014. They argue that this practice has put a huge financial strain on film producers.
Allegations Of Unfair And Discriminatory Practices
The Producers’ Guild has alleged that PVR Inox is not just continuing an outdated fee but is also being unfair and discriminatory. They claim that while most Indian producers are forced to pay the VPF, big Hollywood studios often get a free pass due to special deals. The Guild argues that this is an anti-competitive practice that hurts local filmmakers, especially those with smaller budgets. Even though big Indian studios like Yash Raj Films and Viacom18 also had to pay VPF for their recent releases, the Guild believes the overall practice is discriminatory.
CCI Orders A Detailed Investigation
The CCI seems to agree that there is a case to investigate. The commission noted that PVR Inox, with over 1,700 screens and about 30% of the national box office share, is in a dominant market position. The initial evidence suggests that PVR Inox has been treating producers differently, with nearly 70% of Hollywood films not being charged VPF while Indian producers consistently are.
Finding this to be a possible violation of competition laws, the CCI has asked its Director General to conduct a detailed investigation into PVR Inox’s practices. The report is expected to be submitted within 90 days. Meanwhile, charges against other digital cinema providers like UFO and Qube have been dropped, as similar issues against them were already addressed in a 2020 case.
About The VPF Controversy
The Virtual Print Fee (VPF) is a charge that was introduced in the mid-2000s to finance the transition of cinema halls from analog to digital projection. It was intended to be a temporary fee paid by producers/distributors. The ongoing controversy revolves around multiplexes continuing to levy this fee more than a decade after the transition was complete, a practice producers argue is unfair and abusive.
(Also read: EXCLUSIVE: Meenakshi Chaudhary To Star Opposite Akshay Kumar In Bhaagam Bhaag 2 )
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