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Tag: Competition Commission of India

  • Zee & Sony agree to sell three hindi channels to address CCI’s anti competition concerns

    Zee & Sony agree to sell three hindi channels to address CCI’s anti competition concerns

    Mumbai: Sony and Zee have agreed to sell three hindi channels voluntarily – Big Magic, Zee Action, and Zee Classic – in order to address potential anti-competitive concerns raised by their proposed mega-merger. The regulator made public its detailed 58-page order on Wednesday, more than three weeks after giving its approval for the transaction.

    According to the order, the two groups have agreed to divest Big Magic, a hindi general entertainment channel, as well as Zee Action and Zee Classic, both Hindi film channels.

    They voluntarily agreed to the modification to the proposed deal after CCI determined that the deal would have a significant adverse effect on competition.

    They presented their proposal to the Competition Commission of India (CCI), which approved the deal with conditions on 4 October.

    CCI announced on October 4 that it had approved the “merger of Zee Entertainment Enterprises Limited (ZEEL) and Bangla Entertainment Private Limited (BEPL) with Culver Max Entertainment Private Limited (CME), with certain modifications”.

    Previously, CME was known as Sony Pictures Networks India Pvt Ltd. (SPNI). In September 2021, ZEEL announced a non-binding term sheet with SPNI to merge their linear networks, digital assets, production operations, and programme libraries.

    Deals exceeding a certain threshold must be approved by CCI, which seeks to ensure fair competition in the marketplace.

    CCI announced on 4 October that it had cleared the proposed Zee-Sony merger deal, which was announced in September of last year.

    To ensure fair competition in the relevant markets, the regulator has also mandated that the purchaser meet a number of requirements before purchasing the three channels.

    One of the requirements is that the buyer not be “Star India Private Limited or Viacom18 Media Private Limited (including their respective affiliates)”.

    The purchaser should be completely independent of and unconnected to the resulting entity and its affiliates. According to the order, it also cannot be a former or current employee or director (or the spouse or child of such an employee or director).

    Among other things, the purchaser must have the financial resources, expertise, and incentive to keep and grow the divestment business as a viable and active competitor to the parties and/or the parties’ affiliates.

    “The purchaser should neither be likely to create any prima facie competition concerns, nor give rise to a risk that the implementation of the order will be delayed, and must, in particular, reasonably be expected to obtain all necessary approvals from the relevant regulatory authorities for the acquisition and operation of the divestment business,” the order said.

    The CCI further stated that the planned merger would be judged to have had a significant detrimental impact on competition in India if the parties did not comply with the voluntary adjustments presented.

  • CCI approves Sony-Zee merger ‘with certain modifications’

    CCI approves Sony-Zee merger ‘with certain modifications’

    Mumbai: On Tuesday, the Competition Commission of India (CCI) announced the amalgamation of Zee Entertainment Enterprises (ZEE) and Bangla Entertainment (BEPL) with Culver Max Entertainment (CME), formerly known as Sony Pictures Networks India.

    The amalgamation has been approved “with certain modifications,” the commission said in an official release.

     

     

    According to a statement, CCI stated, “The proposed combination relates to (i) amalgamation of each of Zee and BEPL with and into CME; and (ii) preferential allotment of certain shares by CME to Sunbright International (earlier known as Essel Holdings), and Sunbright Mauritius Investments.”

    Also read: NCLT seeks shareholder nod for Zeel-Sony merger

    Commenting on this development, Sony Pictures Network India said “We are delighted to receive CCI approvals to merge ZEEL into SPN. We will now await remaining regulatory approvals to finally launch the new merged company. The merged company will create extraordinary value for Indian consumers and eventually lead the consumer transition from traditional pay TV into the digital future.”

    In December, Sony and Zee agreed to merge their television channels, film assets, and streaming platforms to form a powerhouse in a key growth market of 1.4 billion people, challenging rivals such as Walt Disney Co.

  • Trai further extends deadline for comments on consultation paper related to cross-media ownership

    Trai further extends deadline for comments on consultation paper related to cross-media ownership

    Mumbai: The Telecom Regulatory Authority of India (Trai) has once again extended the deadline for comments and counter comments on the consultation paper related to issues of media ownership. The new dates to submit comments are 28 June and 5 July, respectively.

    The consultation paper issued on 12 April seeks the views of the stakeholders on the need, nature and levels of safeguards with issues relating to media ownership, particularly cross-media ownership and vertical integration in the broadcasting sector.

    The regulatory authority had received a reference from the ministry of information and broadcasting (MIB) seeking reconsideration of its 2014 recommendations and issuance of a fresh set of recommendations in the light of the emerging changes in the media & entertainment industry, particularly with the advent of new digital technologies such as over-the-top (OTT) platforms.

    An industry analysis by KPMG shows that the media industry is undergoing a declining trend in terms of revenue generation from print, TV and radio while digital media is seeing a significant surge in revenue. Digital media revenues have grown from Rs 3,200 crore in 2014 to an estimated Rs 21,800 crore in 2021.

    Furthermore, Broadcast Audience Research Council (Barc) India’s TV Universe study highlights the changing TV distribution sector and the market share of cable, pay direct-to-home (DTH), free DTH and terrestrial. The data shows that the cable TV market share has declined from 63 million to 40 million while the share of pay DTH has increased from 23 million to 38 million between 2016 to 2021 (estimation). Free DTH has also doubled its market share from 12 million to 22 million (estimation) during the same period, as per the study.

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    “The M&E industry has undergone a drastic change owing to technological developments, particularly those related to Intellectual property (IP) technology and increased use of packet-switched digital communications which have made converged services possible,” said Trai.

    The telecom networks can now provide access to the internet and broadcast content in addition to telecommunication services. “The technological convergence has manifested itself in changed consumer choices which, in turn, reflect the evolving dynamics of the M&E Sector,” remarked Trai.

    In its consultation paper, Trai has asked stakeholders if there is a need to monitor cross-media ownership and control & whether there should be a common mechanism to monitor ownership of print, television, radio and other internet-based news media. Currently, regulatory agencies such as the Competition Commission of India (CCI) and Securities and Exchange Board of India (SEBI) monitor and regulate mergers, acquisitions and takeovers. Trai asks stakeholders whether there is a need to monitor takeovers and acquisitions of media companies, especially news media companies & which government agency/ministry should be entrusted with data collection, regulation and monitoring.

  • 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.

  • Producers form joint action committee to fight unfair labour practices

    Producers form joint action committee to fight unfair labour practices

    Mumbai: The associations of content producers have come together to form an action committee called Media & Entertainment Producers Coordination Committee (MEPCC) to tackle unfair labour practices and issue guidelines to producers.

    The Indian Motion Picture Producer’s Association (IMPPA), Indian Film and TV Producers Council (IFTPC), Western India Film Producer’s Association (WIFPA), The Association of Advertising Producers (ASAP), and Akhil Bharatiya Marathi Chitrapat Mahamandal (ABMCM) have come under one umbrella and formed the action committee to ensure compliance with directions of Competition Commission of India (CCI) and Labour Commissioner.

    The producers’ primary grievances are the unfair labour practices and extortion under different garbs from the trade unions. It has barred trade union’s vigilance officers from visiting shooting locations under any circumstances.

    “The joint action committee will ensure full protection and security of all producers who make entertainment content. In case these producers face a disturbance in the work or shooting by trade unions, they have been advised to immediately file a police complaint in the nearest police station and also inform their association so that immediate action can be initiated against parties indulging in unfair labour practices,” it said in a statement.

    “The committee will also launch a new method of recruitment and selection of workers which will be unveiled soon,” it added.

  • Delhi HC dismisses WhatsApp, Facebook pleas against CCI order

    Delhi HC dismisses WhatsApp, Facebook pleas against CCI order

    New Delhi: The Delhi high court on Thursday dismissed the plea filed by Facebook and WhatsApp challenging the Competition Commission of India (CCI) order directing a probe into its controversial new privacy policy. The court said it found no merits in the petition and refused to quash the CCI probe.

    The CCI had launched an investigation into WhatsApp’s updated privacy policy on 24 March, amid the raging debate over users’ data and privacy on social media platforms. The antitrust body had taken a prima facie view that the messaging app’s new terms of use are in contravention of India’s Competition Act. 

    WhatsApp and its parent company Facebook had challenged the CCI's order through two separate petitions, and the court had decided to reserve its judgement during a hearing on 13 April.

    According to CCI,  WhatsApp's new privacy policy would lead to excessive data collection and "stalking" of consumers for targeted advertising to bring in more users and is therefore an alleged abuse of dominant position. On the other hand, the two social media platforms had contended that when the top court and the Delhi high court were looking into the privacy policy, then CCI ought not to have intervened in the issue. They also argued that the CCI's decision was an abuse of the commission's suo motu jurisdiction. WhatsApp also told the court that private conversations continued to be protected by end to end encryption and the messaging app cannot read the texts or see the media files that people send each other.

    The controversial policy was initially expected to come into effect on 8 February but was later deferred to 15 May amid severe backlash from users. The app plans to make it mandatory for users to agree to its new data-sharing norms, a key point of which is allegedly sharing data from WhatsApp business chats with Facebook. 

    On 19 January, the CCI took suo motu cognisance of the potential impact of the policy and terms for WhatsApp’s users and the market. In its statement, WhatsApp had stated that it “remains committed to protecting people’s personal communications with end-to-end encryption and providing transparency about how these new optional business features work.”

  • CCI approves 16$ bn acquisition of Flipkart by Walmart

    CCI approves 16$ bn acquisition of Flipkart by Walmart

    MUMBAI: The Competition Commission of India (CCI) has approved American retail giant Walmart’s $16 billion acquisition of online marketplace Flipkart. In May, Walmart acquired a 77 per cent stake in Indian e-commerce company.

    With this, Walmart will compete directly with Amazon India in the fast growing e-commerce market. 

    This is the biggest deal for India’s e-commerce sector, which is estimated to grow close to an annual $200 billion in 10 years. The acquisition will give Walmart a strong foothold in Asia’s third largest economy where the company has struggled to expand due to restrictions on foreign investment in retail stores

    In a Twitter post, the CCI has given a heads up to the proposed acquisition of Flipkart by Walmart. The board, in its order, also added that the issue of Flipkart’s discounting practices would be dealt with separately in the upcoming e-commerce policy. 

     

    The regulatory board also mentioned that the discounting practices by Flipkart may have to be reviewed by the relevant authorities, which will put pressure on regulators to clamp down on discounts on online platforms. 

    Responding to CCI’s approval, Walmart said that the company is committed to contributing to the Indian economy by supporting farmers, businesses run by women in India and small and medium suppliers. 

    The statement read: Flipkart is a prominent player in India with a strong, entrepreneurial leadership team that is a good cultural fit with Walmart.

    Soon after the CCI’s approval on the deal, local trader body, Confederation of All India Traders (CAIT) opposed the Flipkart-Walmart deal on the ground that the acquisition will create unfair competition and drive local convenience stores out of business. 

    CAIT’s secretary general Praveen Khandelwal said to Reuters, “We will certainly move the court against the CCI’s decision. CAIT has called an emergency meeting of its governing council on August 19 at Nagpur, where we will finalise our strategy for a nationwide movement.”

  • CCI reduces penalty on broadcast companies for rigging bids

    CCI reduces penalty on broadcast companies for rigging bids

    NEW DELHI: The Competition Commission of India (CCI) on Wednesday waived the penalty imposed on Globecast and reduced by 30 per cent the penalty imposed on Essel Shyam Communication Ltd (ESCl), rechristened Planetcast, for bid-rigging in tenders for procurement of end-to-end broadcasting services for various sporting events, including the IPL-2012.

    The CCI earlier found the two broadcasting companies guilty of operating a cartel amongst them in various sporting events held during the years 2011-12, including Indian Premier League-2012, an IANS news report said.

    It had imposed a penalty of Rs 31.94 crore and Rs 1.33 crore on ESCl and Globecast, respectively, noting that while submitting bids for the tender floated by various broadcasters during the period July 2011 to May 2012, they exchanged information and quoted bid prices as per the arrangements arrived at amongst them.

    However, the commission took up the case under “lesser penalty provisions” against Globecast following which, ESCl — now Planetcast Media Services Ltd — also approached the CCI as lesser penalty applicant during investigation.

    “Keeping in view the stage at which the lesser penalty application was filed, cooperation extended in conjunction with the value addition provided by the evidences furnished by the lesser penalty applicants in establishing the existence of cartel, CCI granted Globecast and its individuals 100 per cent reduction in the penalty and 30 per cent reduction in penalty to ESCl and its individuals,” IANS quoted an official statement as saying.

    “Pursuant to reduction, penalty imposed on ESCl was Rs 22.36 crore. No penalty was imposed on Globecast,” it added.

  • TDSAT ‘no’ to stay Star Bharat launch, DPO payments subject to adjudication

    TDSAT ‘no’ to stay Star Bharat launch, DPO payments subject to adjudication

    NEW DELHI: Even as it declined to stay or restrain the launch of Life OK channel as Star Bharat, the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) yesterday said the amounts paid to the distribution platform operators or DPOs will be subject to the final orders of the tribunal.

    The bench, comprising TDSAT chairman Shiva Keerti Singh and members B B Srivastava and A K Bhargava, observed that the agreements between broadcaster Star India and DPOs Dish TV and Videocon d2h (both entities in the process of merging) will continue to operate and the cost being offered by the broadcaster cannot be reduced unilaterally.

    While Star India was given four weeks to reply, the two DTH platforms were asked to file their counter-affidavits too. Thus, the next hearing may come up some time in October 2017.

    The tribunal said if it is proved that the presence of Star Bharat on Prasar Bharati’s free to air DTH platform FreeDish is tantamount to the channel’s conversion from pay to FTA, then both Dish TV and Videocon d2h will be entitled a refund from Star.

    Star India had contended that merely making a channel available on FreeDish platform does not tantamount to a conversion in the nature of the channel for which the DPOs are being charged.

    Dish TV and Videocon d2h had moved the tribunal earlier this week alleging that Star India was converting its pay channel Life OK into a FTA network by putting the rebranded channel (Star Bharat) on FreeDish platform without informing the Telecom Regulatory Authority of India (TRAI). In its defense before the court, Star India responded by saying that “we are only rebranding” and not “converting our pay channel” into FTA.

    Interestingly, this petition came just two days after Essel/Zee Group’s Dish TV had sent a letter to the Ministry of Information and Broadcasting, Indian cricket board BCCI, TRAI and monopoly watchdog Competition Commission of India. In the letter Dish MD Jawahar Goel had alleged that Star was trying to create a monopoly over cricket broadcast rights in the country, a move that would be detrimental for all stakeholders, including consumers who would ultimately dish out more subscription money to watch cricket on telly.

    To buttress his arrangements, Goel had contended that Star had even challenged rge sector regulator TRAI’s jurisdiction to fix tariff charges — a case that’s pending before the Madras High Court.

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