New Delhi, Jul 30 (IANS): The Competition Commission of India (CCI) has imposed a Rs.16.8 lakh penalty on Karnataka Film Chamber of Commerce (KFCC) for contravening competition law, an official statement said on Wednesday.

The panel also slapped a Rs.1.74 lakh fine on the Karnataka Television Association (KTVA) and Rs.1.68 lakh on the Kannada Film Producers Association (KFPA) for being anti-competitive in the entertainment business.

"The panel has found KFCC, KTVA and KFPA acted in contravention of section 3 of the Competition Act, 2002, and prevented the release/telecast of dubbed films/television serials in Karnataka," the statement said.

The panel's ruling, including penalty and observation came on a representation by an association of viewers who alleged that conduct of the KFCC, KTVA and KFPA was anti-competitive, as they did not allow dubbed content in films and TV serials.

The investigation, conducted by the panel's director general, also found that the ban on exhibition of dubbed content in films and TV programmes prevented competing parties in pursuing commercial activities.

"The commission found no merit in the claim of the apex body and the other two associations that dubbed content destroys local language and culture and deprives local artistes of opportunities," the statement noted.

The panel also directed the representative associations to cease and desist from indulging in anti-competitive activities.

It also found that the film apex body had violated the competition law on previous occasions in defiance of its earlier orders and hence the penalty of Rs.16,82,204 was calculated at 10 percent of the KFCC income.

Similarly, fine of Rs.1,74,293 and Rs.1,68,124 was calculated at eight percent of the income of KTVA and KFPA respectively.