Penalty of 52.24 on Board of Control for Cricket in India

Competition Commission slaps Rs 52 crore penalty on BCCI

Question: Who imposed a penalty of INR 52.24 crore on BCCI for indulging into the anticompetitive conduct?
(a) SEBI
(b)  CCI
(c) Supreme Court
(d) ICC
Answer: (b)
Related Facts:

  • On November 29, 2017, the Competition Commission India (CCI) imposed a penalty of INR 52.24 crore on BCCI for indulging into the anticompetitive conduct.
  • It is noteworthy that the BCCI had assured the broadcasters of the Indian Premier League (IPL) that they will not be able to organize, sanction, accredit or support any other professional domestic Indian T-20 competition like the IPL competition for 10 years.
  • After a detailed investigation by the DG, CCI found that BCCI enjoys a dominant position in the market for organisation of professional domestic cricket leagues/ events in India.
  • Based on the nature of activities performed, BCCI has been held as an enterprise and thus, would come under the purview of the Act.
  • While recognising the role of sports federation in taking measures to serve the integrity or development of the sport, CCI held that the impugned restriction had no nexus to the legitimate interest of cricket in the country.
  • Apart from this, the CCI has given the following instructions:
  • (a) BCCI shall cease and desist from indulging into the conduct that is found to be in contravention of Section 4 of the Act;
  • (b) BCCI shall not place blanket restriction on organisation of professional domestic cricket league/ events by non-members. Such changes shall entail norms that underpin principles of non-discrimination and shall be applied in a fair, transparent and equitable manner;
  • (c) Having done the above, BCCI shall issue appropriate clarification regarding the rules applicable for organisation of professional domestic cricket leagues/ events in India, either by members of BCCI or by third parties, as well as the parameters based on which applications can be made and would be considered. 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 ; and
  • (d) BCCI shall file a report to the Commission on the compliance of the aforesaid directions from (a) to (c) within a period of 60 days from the receipt of CCI’s order.

Reference:
https://timesofindia.indiatimes.com/sports/cricket/news/competition-commission-slaps-rs-52-crore-penalty-on-bcci/articleshow/61850459.cms
http://www.thehindubusinessline.com/news/sports/competition-panel-slaps-rs-52cr-penalty-on-bcci/article9976637.ece