CCI Finds BookMyShow Dominant but Clears It of Abuse of Market Power

The Competition Commission of India (CCI) has closed a complaint alleging abuse of dominance by BookMyShow, the online movie ticketing platform operated by Big Tree Entertainment. While the Commission acknowledged that BookMyShow holds a dominant position in the online ticket booking market, it found no violation of the Competition Act, 2002.

The case arose from a complaint filed by Vijay Gopal, proprietor of Vanila Entertainments, which operates the online ticket booking platform Showtyme. Gopal alleged that BookMyShow had entered into exclusive agreements with cinema halls and multiplex chains, preventing competing platforms from accessing the market.

The complainant also argued that BookMyShow charged a convenience fee on online ticket bookings and shared a portion of that fee with cinema operators. According to the complaint, this arrangement discouraged theatres from collaborating with rival ticketing platforms.

The Commission examined these allegations under Section 4 of the Competition Act, which deals with abuse of dominant position. As part of the analysis, the CCI first determined the relevant market in which the platform operates.

It agreed with the findings of the Director General (DG) that online ticket booking services form a separate market from traditional box-office ticket sales. The Commission noted that online platforms provide features such as seat comparison across theatres, digital payment options, cancellation facilities and promotional offers—services typically unavailable at physical ticket counters.

Based on these factors, the CCI defined the relevant market as the “market for online intermediation services for booking of movie tickets in India.”

The Commission then examined whether BookMyShow holds a dominant position in this market. It observed that the platform entered the market at an early stage and gradually built a wide network of cinema partners and a large user base.

According to the CCI, BookMyShow has maintained a leadership position for several years due to its strong network effects, extensive partnerships with cinema operators, and large consumer base. On this basis, the Commission concluded that BookMyShow indeed occupies a dominant position in the relevant market.

However, dominance alone does not constitute a violation of competition law. The key question before the Commission was whether the platform had abused its dominant position.

After examining the evidence, the CCI held that there was no material to show that BookMyShow’s conduct resulted in market foreclosure or denial of access to competitors. It noted that other players such as Paytm, Justickets and Amazon continue to operate in the same market.

The Commission also rejected allegations regarding seat reservations on the platform. BookMyShow had explained that reserving seats helps prevent overlapping bookings between online and offline sales. Unsold seats are eventually released back to the box office, ensuring availability to consumers.

Another allegation concerned customer data ownership and different data-sharing arrangements between multiplex chains and single-screen cinemas. The Commission observed that these two categories of cinema operators are not comparable in terms of infrastructure, operational capacity and ability to manage customer data securely.

Similarly, the CCI dismissed claims that revenue-sharing arrangements related to convenience fees were discriminatory. It emphasised that such arrangements depend on commercial negotiations and market factors. The Commission reiterated that competition authorities are not price regulators.

Regarding the alleged exclusive agreements with cinemas, the Commission found that the evidence did not demonstrate substantial market foreclosure. The number of such arrangements was relatively small when compared to the total number of cinema screens across India.

In light of these findings, the CCI concluded that BookMyShow had not abused its dominant position under Section 4 of the Competition Act, 2002, and accordingly closed the proceedings.

BookMyShow was represented by Senior Advocate Arun Kathpalia along with legal teams from Chandhiok & Mahajan and Shardul Amarchand Mangaldas.