New Delhi: The Competition Commission of India (CCI) on Wednesday slapped a ban of ₹52.24 crore on the Board of Control for Cricket in India (BCCI) for indulging in anti-competitive practices with regard to the IPL media rights.
In a 44-page order, the CCI said that the penalty of ₹52.24 is nearly 4.48 % of the average of the BCCI’s relevant turnovers during the last three financial years (2013-2014, 2014-2015 and 2015-2016). The average turnover for three financial years is ₹1,164.7 crore.
The CCI’s order has found the BCCI to be in, “contravention of the provisions of Section 4(1) read with Section 4(2)(c) of the Competition Act, 2002 (Act) for its assurance to the broadcasters of Indian Premier League (IPL) that BCCI shall not organise, sanction, recognise, or support another professional domestic Indian T20 competition that is competitive to IPL, for a sustained period of ten years.”
The CCI further said that the BCCI further pursued this restriction to protect the commercial interests of the bidders of the IPL media rights.
The order read, “The assessment of the Commission clearly brings out that the impugned clause in the IPL (Indian Premier League) Media Rights Agreement has been pursued by BCCI consciously to protect the commercial interest of the bidders of broadcasting rights as well as the economic interest of BCCI.”
“BCCI shall not place blanket restriction on organisation of professional domestic cricket league or events by non-members,” the order further read.
“This shall, however, not preclude BCCI from stipulating conditions while framing or modifying relevant rules for approval or while granting specific approvals, that are necessary to serve the interest of the sport. Such changes shall entail norms that underpin principles of non-discrimination and shall be applied in a fair, transparent and equitable manner.”
“Besides, BCCI shall take all possible measure(s) to ensure that competition is not impeded while preserving the objective of development of cricket in the country.”
The CCI had earlier imposed a fine of ₹52.24 crore on the BCCI in 2013. The current turnover is slightly higher than the one in 2013, when the order was passed but the regulatory body felt that the penalty amount needed to be maintained. They have also made it clear to the BCCI that the penalty amount is needed to be paid within 60 days after receiving the order.