CCI imposes Rs. 52 crore penalty on BCCI
Competition Commission of India (CCI) has imposed a penalty of Rs. 52.24 crore on the Board of Control for Cricket in India (BCCI) for its anti-competitive practices with respect to IPL media rights. CCI ruled that BCCI's assurance to IPL broadcasters that the board shall not organize, or recognize another professional domestic T20 league, is in contravention of Competition Act, 2002.
Under the purview of the Competition Act
CCI said that, based on nature of activities performed, BCCI is held as an enterprise and therefore falls under the purview of Competition Act. It also held that the 'impugned restriction' in the IPL Media Rights Agreement had no nexus to legitimate interest of cricket and was pursued by BCCI to enhance commercial interests of bidders of broadcasting rights and economic interests of board.
What did the CCI direct the BCCI to do?
Apart from the penalty, CCI has directed BCCI to not place blanket restriction on organization of professional domestic cricket league/events by non-members. It has also asked BCCI to issue clarification on rules applicable for organization of such leagues either by members/non-members. It added "Further the board shall take possible measures to ensure competition is not impeded while preserving the objective of development of cricket."
Penalty equals 4.48% of BCCI's average turnover last 3 years
The penalty of Rs. 52.24 crore amounts to 4.48% of the average of BCCI's relevant turnover in last three financial years.
