What happened
On 29 November 2017 the Competition Commission of India fined the Board of Control for Cricket in India Rs 52.24 crore in a 44-page order, calculating the penalty as 4.48% of BCCI's average relevant turnover of Rs 1,164.7 crore across FY2013-14 to FY2015-16. The commission also directed the board to cease and desist from the conduct, defining the relevant market as the organisation of professional domestic cricket leagues and events in India.
The conduct at issue was a clause in the IPL Media Rights Agreement: BCCI's assurance to its broadcast bidders that it would not sanction, recognise or support another Indian domestic T20 league competitive with the IPL, for a sustained period of ten years. The commission found the clause had been pursued 'consciously to protect the commercial interest of the bidders of broadcasting rights as well as the economic interest of BCCI', and that denial of market access is one of the most severe forms of abuse of a dominant position.
The order had a history. CCI had first imposed the same penalty on BCCI in February 2013. The now-defunct Competition Appellate Tribunal (COMPAT) set that order aside in February 2015 and sent the matter back for a fresh look; the Director General's supplementary investigation report was filed in March 2016, and after weighing it with BCCI's submissions, CCI re-imposed the identical amount.
BCCI's defences all failed. Not-for-profit status with revenue ploughed back into cricket was a general feature of sports federations, not a mitigating factor. And the board's argument that nobody had ever proposed a rival league cut both ways: 'after assuming monopoly of IPL for a sustained period of ten years by excluding all potential competition, there is no reason for BCCI or anyone to expect a proposal for organisation of a similar league', the order said. BCCI remained free to set conditions for approving T20 leagues, provided its rules were clear and non-restrictive.
What it cost
Rs 52.24 crore penalty — 4.48% of BCCI's three-year average relevant turnover of Rs 1,164.7 crore
Why it happened
The media rights agreement bundled a broadcast licence with a promise that BCCI would not foster any competing domestic league, converting a commercial exclusivity into market-wide exclusion.
A decade-long no-compete effectively guaranteed no rival league would ever apply for sanction, so the absence of formal refusals proved nothing about the restriction's effect.
BCCI treated the clause as ordinary commercial housekeeping for the broadcast deal rather than as a competition-law exposure attached to a monopoly position.
The board's governance assumed not-for-profit status and cricket's national standing insulated it from competition scrutiny — the regulator explicitly rejected both as mitigating factors.
The lesson
Exclusivity for a big buyer can double as exclusion of every future competitor. A promise not to support anything that could rival your own product reads to a regulator as denial of market access.
Aftermath
IPL chairman Rajiv Shukla said the same day the board would study the order and, if need be, appeal in court. The 2017 order restored, rupee for rupee, the penalty the appellate tribunal had set aside in 2015 — a remand to the Director General re-established the same abuse. The cease-and-desist direction left BCCI free to keep approving league formats, but with rules it could not use to wall out third-party leagues. The ruling put a competition-law price tag on the exclusivity architecture that kept rival domestic T20 leagues out of the market through the IPL's first decade.
FOLLOW THE EVIDENCE
The sources
- BCCI fined INR 52.24 crore for 'anti-competitive conduct' cricinfo.com
- Competition Commission Slaps Rs 52-Cr Penalty On BCCI sports.ndtv.com
- BCCI slapped huge fine by Competition Commission, 'shall move court' says Shukla hindustantimes.com