According to the proposal submitted to the CCI, producers will no longer have to make any upfront payment to PVR INOX. Instead, they can choose between a fixed exhibition service charge (ESC), deducted from their share of weekly net box office collections, or a revised revenue-share arrangement under which their share of collections would be reduced by no more than 7.5 per cent.
PVR INOX has proposed discontinuing VPF, as well as any other upfront payment, for all film producers within 120 days of acceptance of the commitments by the CCI. In its place, it proposes a uniform choice-based framework under which producers may opt either for a per-show exhibition service charge or a revised revenue-sharing arrangement.
PVR INOX said in the commitment proposal, “PVR Inox is entirely doing away with the requirement of any upfront payment by film producers, thereby fully eliminating the cash flow burden associated with pre-release payment obligations.”
On September 30, 2025, the CCI directed an investigation into the alleged contravention of Section 4 of the Competition Act, 2002, concerning the allegedly discriminatory levy of VPF, its possible impact on smaller producers and the absence of a direct link between the fee and any specific service. The case arose from information filed by the Film and Television Producers’ Guild of India Limited.
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The Competition (Amendment) Act, 2023, introduced Sections 48A and 48B of the Act to create a settlement and commitment mechanism that allows companies facing antitrust investigations to voluntarily offer corrective measures or agree to certain terms to resolve cases without prolonged litigation.
Submitting its proposal, PVR INOX said that its “proposed commitments offer a fair, non-discriminatory and transparent choice to producers that maps cleanly onto producers' differing commercial preferences and risk profiles while fully addressing the Commission’s prima facie concerns.”
PVR INOX did not reply to an email query sent to it on this matter.
