New Delhi: The Competition Commission of India (CCI) has ordered an investigation into an alleged breach of fair trade rules by PVR INOX, the country's largest multiplex cinema chain, on a complaint filed by a movie producers' body.

In the order dated September 30, reviewed by ET, the CCI observed prima facie violation of competition rules by PVR INOX in charging domestic movie producers, including small ones, a fee for deploying digital cinema equipment in its theatres.

The virtual digital fee, which has existed in India since 2007, was first proposed to be imposed on producers to help the transition of movie theatres from the analogue projectors and tools to digital equipment.

The Film and Television Producers' Guild of India, the complainant, has submitted that this practice was scrapped around 10 years later in Hollywood once the digital transition was complete. However, producers here are still forced to pay the fees even though the transition is long over in India, the body alleged, making its case against PVR.

The CCI has asked its director general (DG) to investigate the matter and submit its report in 90 days.

It has also asked the DG to investigate the role of persons/officers who may have been responsible for PVR INOX's alleged anti-competitive conduct.

"It is also made clear that nothing stated in this order shall tantamount to a final expression of opinion on the merits of the case and the DG shall conduct the investigation without being swayed in any manner, whatsoever, by the observations made herein," the regulator said in the order.