Home > News >

Perpetual IPL rights adversely impact competition: CCI

image_20130217180825

CCI had slapped a penalty of Rs 52.24 crore on the BCCI © Getty Images

New Delhi: Feb 17, 2013    

Indian cricket board’s granting of Indian Premier League (IPL) franchise rights on the basis of perpetual agreements creates barriers to potential entries, adversely impacting competition, fair trade regulator CCI has said.

The Competition Commission of India, which keeps a tab on anti-competitive practices across sectors, has slapped a penalty of Rs 52.24 crore on the Board of Control for Cricket in India (BCCI) for alleged anti-competitive practices.

“The perpetual franchise agreements undoubtedly create barrier to potential entries in the market,” CCI member R Prasad said in the supplementary order.

“Also, the agreements for the longer term promote market power of the enterprises in terms of being better placed to judge the similar investment opportunity in future (as actually into the business),” Prasad said.

Both the majority as well as supplementary orders were passed on February 8, posted on CCI site late last week. The majority order said that BCCI abused its dominant market position, which violates fair competition norms.

According to Prasad, these perpetual agreements deny certain potential benefits to the consumers like innovation in the game format and benefit of more competition in the sport.

Perpetual franchise agreements for the Indian Premier League (IPL) – a Twenty20 cricketing format – cause appreciable adverse effect on competition, he noted.

Prasad said that franchise agreement, entered between the BCCI and franchise winners are for perpetuity – violates the Competition Act 2002 and requires modification.

“… in the franchise agreements, the franchisees have been given licence till the IPL tournament continues. Therefore, the agreements so made will have the effect infinitum, until and unless a breach of terms of the  contract takes place,” the supplementary order said.

Further, no more franchisees – at present there are 10 -are contemplated in future. Therefore, no future teams can be selected or the number of playing teams can be enhanced, it added.

On February 8, when the majority order came, BCCI had said it was planning to seek legal recourse and appeal against the decision.

Meanwhile, another CCI member ML Tayal has said that BCCI did not violate competition rules.

In his dissenting order dated February 8, Tayal said that BCCI and the franchisee holders are not competitors or persons engaged in identical or similar trade of goods or provision of services.

“Consequently no bid rigging arrangements may be held to exist among such entities,” Tayal said in the order.

South Africa tour of Sri Lanka, 2014

Jul 24, 2014 (10:00 IST)   at Colombo

India tour of England 2014

Jul 27, 2014 (15:30 IST)   at Southampton

Pakistan tour of Sri Lanka, 2014

Aug 6, 2014 (10:00 IST)   at Galle

India tour of England 2014

Aug 7, 2014 (15:30 IST)   at Manchester

South Africa in Zimbabwe, 2014

Aug 9, 2014 (13:30 IST)   at Harare

More

Afghanistan tour of Zimbabwe, 2014

Jul 24, 2014  at Bulawayo

Afghanistan won by 100 runs

Afghanistan tour of Zimbabwe, 2014

Jul 22, 2014  at Bulawayo

Afghanistan won by 2 wkts

Afghanistan tour of Zimbabwe, 2014

Jul 20, 2014  at Bulawayo

Zimbabwe won by 8 wkts

Afghanistan tour of Zimbabwe, 2014

Jul 18, 2014  at Bulawayo

Zimbabwe won by 6 wkts

India tour of England 2014

Jul 17, 2014  at London

India won by 95 runs

Photos

Heroes of India's Test wins in England

Videos

Gary Ballance looks ahead to third Test

India vs England 3rd Test at Southampton: England must persist with Ben Stokes despite poor form

Afghanistan’s recent victories over Zimbabwe are encouraging for their build-up to ICC World Cup 2015

India vs England 2014, 3rd Test at Southampton: Should Ravichandran Ashwin get a look-in?

Physically challenged cricketers aim to bring glory to India

India tour of England 2014: Mohammed Shami has impressed in patches but wickets elude him

England England vs India England vs India 2014 India India tour of England 2014 India vs England India vs England 2014 Ishant Sharma South Africa South Africa tour of Sri Lanka 2014 South Africa vs Sri Lanka South Africa vs Sri Lanka 2014 Sri Lanka Sri Lanka vs South Africa Sri Lanka vs South Africa 2014

Misbah-ul Haq: Spinners would play important role in Sri Lanka

Mahela Jayawardene: Enjoy playing against South Africa

Abhishek Bachchan says would love to do biopic on Yuvraj Singh

Sachin Tendulkar remembers Raj Singh Dungarpur’s role in his growth as cricketer

Jagmohan Dalmiya says Eden Gardens should be one of the venues for ODIs against West Indies

India vs England 3rd Test at Southampton: England must persist with Ben Stokes despite poor form

Misbah-ul-Haq’s hitch at the helm

Growing Up in the 1990s: Cricket

Afghanistan’s recent victories over Zimbabwe are encouraging for their build-up to ICC World Cup 2015

India vs England 2014, 3rd Test at Southampton: Should Ravichandran Ashwin get a look-in?

Fan of the Day

Fan Cricket

Fan Cricket

11 Posts | 2 Fans

Brazil vs Netherlands, 3rd place Fifa World Cup 2014 match Video Highlights

Consumer Affairs Min may frame norms for online shopping

Telecom equipment imports up at Rs 74,116 crore

Abhinav Bindra: Commonwealth Games 2014 winner’s tryst with gold

Telangana bus-train accident: Child’s body exhumed, handed over to real parents

Why is Huma Qureshi excited about her birthday this year?

Kick dialogue promos: Salman Khan delivers dumdaar dialogues

7 reasons you need to put broccoli on your plate

Beware! Drinking on your birthday might land you in the hospital

Also on cricketcountry.com

Play Fantasy Cricket & Win

Cash Daily! Click here