SC upholds CCI’s right to investigate JioStar over Kerala cable market dominance

New Delhi: The Supreme Court on Tuesday dismissed a petition filed by broadcaster JioStar seeking to stay an investigation initiated by the Competition Commission of India (CCI) into alleged abuse of dominance in the Kerala cable television market. The Bench, comprising Justices JB Pardiwala and Sandeep Mehta, observed that the probe was at an early stage and declined to interfere. The decision was reported according to Bar & Bench.

The case traces back to a complaint lodged by Asianet Digital Network Private Limited (ADNPL), which alleged that JioStar, holding exclusive rights to major sporting events and operating dominant television channels in Kerala, had engaged in practices that violated Section 4 of the Competition Act, 2002.

ADNPL claimed that JioStar offered disproportionate discounts, exceeding 50% to a rival operator, Kerala Communicators Cable, through marketing agreements that reportedly circumvented regulatory limits, thereby restricting market access for other players.

The CCI, acting on the complaint, had formed a prima facie view on February 28, 2022, that anti-competitive practices may have occurred and directed its Director General to conduct a formal investigation under Section 26(1) of the Competition Act.

JioStar challenged the CCI’s order before the Kerala High Court, contending that the dispute fell under the regulatory domain of the Telecom Regulatory Authority of India (TRAI) and that competition law was not applicable. Both a single judge and later a Division Bench of the High Court dismissed the challenge, affirming CCI’s jurisdiction to examine allegations of abuse of dominance.

In the Supreme Court, JioStar reiterated its stance that the matter was regulated under TRAI rules. However, the court held that the preliminary investigation by the CCI could continue and that all issues, including regulatory overlaps, could be considered once the probe was complete.