SC allows CCI to conduct detailed probe into allegations against JioStar

The Supreme Court has allowed the Competition Commission of India (CCI) to proceed with the probe into the complaint against Reliance Industries-owned JioStar by another network alleging discriminatory pricing practices in Kerala television market.           

A division bench of Justices J B Pardiwala and Sandeep Mehta refused to halt the investigation saying the matter was at a preliminary stage.

 “Sorry. Let the regulator investigate. It is only at a preliminary stage. Dismissed,” said the bench as it rejected JioStar’s special leave petition.

Asianet Digital Network Limited had accused JioStar of violating the Competition Act, 2002 by engaging in discriminatory pricing practices and granting preferential treatment to Kerala Communicators Cable Limited in the television broadcasting market in Kerala.

Appearing for JioStar, Senior advocate Mukul Rohatgi argued that the company was governed by the Telecom Regulatory Authority of India (TRAI) Act, 1997, which regulates pricing and discounts by broadcasters, so the issue fell exclusively within TRAI’s jurisdiction.

Jiostar had approached the Supreme Court after Kerala High Court had last month refused to stay the probe.

The CCI has directed its Director General to conduct a detailed probe into the allegations against JioStar and its subsidiaries.

According to sources, Asianet had alleged that its subscriber base declined significantly within six months due to the preferential treatment extended to Kerala Communicators Cable Limited.

Under TRAI regulations, broadcasters are permitted to offer discounts of up to 35% and are required to follow non-discriminatory pricing norms. Asianet claimed that JioStar effectively offered discounts exceeding 50% through separate marketing or promotional agreements, which it described as sham arrangements.