Supreme Court Clears Path for CCI Probe into JioStar’s Kerala TV Market Conduct
The Supreme Court has dismissed JioStar’s plea to stop a Competition Commission of India (CCI) investigation into alleged abuse of dominance in Kerala’s cable TV market. This allows the antitrust regulator to proceed with its probe against the Reliance-Disney joint venture.
Key Takeaways
- The Supreme Court upheld the Kerala High Court order permitting the CCI investigation.
- The probe was initiated in October 2023 based on a complaint by cable operators.
- JioStar argued the probe was premature, but the court declined to intervene.
Background of the Case
The CCI ordered an investigation in October 2023 following a formal complaint from the Kerala Cable TV Operators Association (KCTOA). The association accused JioStar of abusing its dominant position by imposing unfair conditions on local cable operators (LCOs).
Specific allegations include forcing LCOs into long-term agreements and restricting them from offering channels from other broadcasters.
Legal Journey to the Supreme Court
JioStar first challenged the CCI probe in the Kerala High Court. In April, the High Court refused to stay the investigation. The company then approached the Supreme Court, seeking relief.
Arguing for JioStar, senior advocate Harish Salve contended the CCI probe was premature. He stated the company had just entered the market and could not be considered dominant. He also suggested the complaint was motivated by existing competitors.
Supreme Court’s Decision
A bench of Justices Hrishikesh Roy and Prashant Kumar Mishra refused to interfere with the High Court’s order. By declining to grant relief, the apex court has cleared the way for the CCI to continue its investigation into the competition law allegations.
The CCI will now examine whether JioStar violated provisions of the Competition Act, 2002, concerning abuse of dominant position in the Kerala cable television distribution market.
