Bombay High Court Quashes Competition Commission Of India Order To Probe Star, Sony TV For Price Discrimination

The Bombay High has quashed a recent order passed by the Competition Commission of India (CCI) to investigate Sony Pictures Network India and Star India for alleged price discrimination.

It may be recalled that on July 27, 2018, a CCI bench had ordered a probe against both the satellite TV broadcasters for allegedly anti-competitive behavior regarding pricing of their TV channels.

However, the High Court has set aside this ruling, after hearing a plea filed by Star and Sony challenging the CCI order which had directed a probe in response to a complaint filed by Noida Software Technology Park Ltd (NSTPL), a satellite communication firm.

NSTPL had alleged price discrimination in the distribution of Sony and Star TV channels among various distributors. Upholding the claims made by the NSTPL, the CCI had directed the Director General (DG), its investigation arm, to probe whether Star India and Sony Pictures India had refused to deal with the NSTPL by way of price discrimination.

The CCI, in its order, had stated that the broadcasters appeared prima facie in contravention to Section 3 (4) of the Competition Act, which prohibits anti-competitive agreements. Being aggrieved, the two broadcasters moved the Bombay High Court in 2018.

The high court found credence in an argument made by Star India that in the second plea before TDSAT in 2015, NSTPL had made various specific allegations against Star. Therefore, the court held that the writ pleas against the CCI order are maintainable.

Allowing writ pleas filed by Star and Sony, the court ruled that the CCI orders dated July 27, 2018 and July 31, 2018 under Section 26(1) of the Competition Act, 2002 and all consequent actions/notices of the Director-General are quashed and set aside in exercise of the court’s power under Article 226 of the Constitution of India.