Bombay HC to CCI: No Coercive Action against Star, Disney, Asianet Star under Competition Act

Shivani Thakur

Published on: April 8, 2022 at 18:42 IST

The Bombay High Court directed the Competition Commission of India not to take action against three Broadcasters and Media and Entertainment Companies, Asianet Star Communication Pvt Ltd, Disney Broadcasting Pvt Ltd. And Star India Pvt Ltd.

A Bench of Justices Gautam Patel and Madhav Jamdar ordered the Competition Commission of India (CCI) not to pass any Orders in furtherance of its Investigation based on a Complaint by Asianet Digital Network Pvt Ltd (ADNPL).

The Competition Commission of India is not to pass any further Orders or to Adjudicate further on the complaint (in which the order under challenge is passed) until further Orders of the Court. The Competition Commission of India is not to permit or direct any Coercive Actions against the Petitioners until the next date” the Order stated.

The Court directed the Petitioners to present the Documentary Material asked by the Director General of Competition Commission of India to pursue the Order without Prejudice and without equity.

The Bench passed the Order in Writ Petitions filed by the three Petitioners challenging an Order of Competition Commission of India directing its Director General to initiate Investigation under Section 26 of the Competition Act.

In the complaint, Asianet Digital Network Pvt Ltd referred to the Regulations of the Telecom Regulatory Authority of India and the Telecom Disputes Settlement and the Appellate Tribunal. The regulation Prohibits the discriminatory pricing in Commercial Contracts with multi-service operators.

The Petitioners intended to bypass the Telecom Regulatory Authority of India/ Telecom Disputes Settlement and the Appellate Tribunal set-caps or upper limits with an intend to provide unfair advantage to Asianet Digital Network Pvt Ltd ‘s competitor.

Senior Advocate Darius Khambata, appearing for Star India, submitted that the Order was bad and cannot be sustained. Advocate Somsekhar Sundaresan appearing for Competition Commission of India, however, opposed the Petition stating that since the entire issue arose in Kerala, the challenge ought to have been in a Court of Kerala.

Senior Advocate Navroz Seervai for Asianet Digital Network Pvt Ltd supported the Order.

The High Court opined that Competition Commission of India ought to be given an opportunity to place its Case before the Court along with the complainant.

Accordingly it permitted the parties to File their Affidavits in replies and rejoined the matter on next hearing on June 8, 2022.

Also Read: Recent cases of Competition Commission of India

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