LI Network
Published on: October 7, 2023 at 13:42 IST
The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) recently issued a verdict stating that over-the-top (OTT) platforms are distinct from TV channels and, prima facie, fall outside the purview of the Telecom Regulatory Authority of India Act (TRAI Act). The ruling was made in response to a plea filed by the All India Digital Cable Federation (AIDCF) against STAR India Pvt Ltd.
In the case, AIDCF alleged that STAR India’s practice of streaming ICC Cricket World Cup matches for free on mobile devices via Disney+ Hotstar was discriminatory and violated TRAI guidelines. STAR Sports, a channel by STAR India, charged cable operators for broadcasting, while Disney+ Hotstar allowed users to view matches for free.
The petitioners sought a directive to either stop STAR from streaming matches on Disney+ Hotstar or provide the TV channel free of charge.
The key contention revolved around whether OTT platforms fell under the definition of “distribution platform” in regulation 2(r) of TRAI Regulations. The petitioners argued that although OTT platforms were not explicitly mentioned, they should be considered as part of the definition. They claimed that OTT platforms, like STAR’s Disney+ Hotstar, used the internet and fell under the definition of “Telegraph” as per the Indian Telegraph Act.
The respondents, on the other hand, contended that according to regulation 2(r), OTT platforms were not covered, as the definition was exhaustive. They also informed the tribunal that TRAI was already conducting a separate consultation process to determine the status of OTT platforms under the TRAI Act.
Furthermore, the respondents emphasized that OTT platforms did not require licenses from the central government and were fundamentally different from TV channels. They argued that OTT platforms were regulated by the Information Technology Act of 2000 and the 2021 rules, rather than the TRAI Act of 1997 and its associated regulations.
After considering the arguments presented by both parties, the tribunal admitted the broadcasting petition. However, regarding interim relief, the tribunal determined that, prima facie, OTT platforms did not fit the definition of ‘distribution platform’ in regulation 2(r) of TRAI Regulations.
The tribunal also concluded that there was no prima facie case with the petitioner when considering the provisions of the Information Technology Act and the corresponding rules from 2021, along with the TRAI Act.
In terms of convenience and potential harm, the tribunal found that the balance was not in favor of the petitioner. It noted that no irreparable loss would be incurred by the petitioner if the stay was not granted, suggesting that the petitioner could maintain a list of consumers who subscribed to the Star Sports channel on their platform.
Consequently, the TDSAT directed the petitioner to file a rejoinder affidavit before the next hearing, scheduling the matter for December 18.