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Tag: Asianet Digital Network

  • No coercive action against Disney Star: Bombay HC to CCI

    No coercive action against Disney Star: Bombay HC to CCI

    Mumbai: The Bombay high court has directed the Competition Commission of India (CCI) not to take coercive action against three broadcasters – Asianet Star Communications, Disney Broadcasting (India), and Star India in furtherance of an order initiating investigation against such companies. A bench of justices Gautam Patel and Madhav Jamdar passed the judgement, according to Bar and Bench report on Friday.

    The court also directed the petitioners to furnish to the director general of CCI the documentary material called for in response to the queries in furtherance of the order, on a without prejudice and no-equities basis.

    The director general was also ordered to keep the information collected by him confidential as required by law until the next hearing date.

    The bench passed the order in writ petitions filed by the three petitioners challenging an order of CCI passed on 28 February directing its director general to initiate investigation under Section 26 of the Competition Act based on a complaint by Asianet Network Digital.

    Asianet is in the business of distribution of TV channels to customers through local cable operators predominantly in Kerala. It had contended in its complaint that broadcasters such as the petitioners, must not have discriminatory pricing in commercial contracts with multi-service operators (MSOs) such as Asianet.

    In the complaint, Asianet referred to the regulations of the Telecom Regulatory Authority of India (Trai) and the Telecom Disputes Settlement and Appellate Tribunal (TDSAT), which prohibits discriminatory in commercial contracts with MSOs.  

    Asianet stated that the petitioners, by abusing their position of dominance, provided significant discounts to a direct competitor through allied agreements that apparently offered a cashback system. The petitioners intended to bypass the Trai/TDSAT set-caps or upper limits with an intent to provide unfair advantage to Asianet’s competitors.

    In view of this, CCI ordered the director general to conduct an investigation and submit a report within 60 days. The same was challenged before the high court.  

  • Probe against Star India for alleged abuse of dominant position

    Probe against Star India for alleged abuse of dominant position

    Mumbai: The Competition Commission of India (CCI) has ordered a probe into the alleged abuse of dominant position by Star India. The complaint was filed by Asianet Digital Network against Star India, Disney Broadcasting (India), and Asianet Star Communications, said PTI in a news report.

    According to the complaint, Star India was providing a bouquet of channels to the competitor of the informant at lesser prices resulting into denial of market access and also amounting to unfair/discriminatory pricing.

    It chose an indirect way to provide these discounts to circumvent the New Regulatory Framework of Trai by way of promotion and advertisement payments to informant’s competitor through high valued advertising deals, the complaint alleged.

    “Therefore, on the basis of market share, dependence of consumers, size and resources of the enterprise (being part of global media conglomerate), vertical integration of the enterprise and countervailing power, the Commission is of prima facie view that OP-1 enjoy a position of dominance in the relevant market delineated supra,” it noted.

    The relevant market prima facie appears to be “market for provision of broadcasting services in the state of Kerala,” the regulator said.

    “The alleged discriminatory conduct of price discrimination between different multi-system operators of Star India has resulted into significant loss in the consumer base of the Informant and therefore prima facie appears to be in violation of the provisions of section 4 of the Competition Act, due to discriminatory pricing and denial of market access.”

    The section 4 pertains to abuse of dominant position.

    “Accordingly, the Commission directs the Director General (DG) to cause an investigation to be made into the matter and submit an investigation report within a period of 60 days from the date of receipt of this order,” CCI said in an order dated 28 February.

    It further said that nothing in this order shall be tantamount to a final expression of opinion on the merits of the case, and the DG shall conduct the investigation without being swayed by the observations. Separately, the regulator has dismissed a plea of interim relief filed by the informant.