New Delhi: The Supreme Court has refused to halt an ongoing competition probe against JioStar, clearing the way for the Competition Commission of India (CCI) to continue its investigation into alleged abuse of dominance in Kerala’s cable television market.
A Bench comprising Justices JB Pardiwala and Sandeep Mehta observed that the inquiry was still at a preliminary stage and found no grounds to interfere at this point. The ruling was reported by Bar & Bench.
The investigation stems from a complaint filed by Asianet Digital Network Private Limited, which accused JioStar of leveraging its dominant position in the state’s television ecosystem. According to the complaint, JioStar holds exclusive rights to several marquee sporting events and operates influential TV channels in Kerala, giving it significant market power.
Asianet alleged that JioStar entered into marketing arrangements with a rival distributor, Kerala Communicators Cable, under which discounts exceeding 50% were offered. These concessions, the complainant claimed, went beyond permissible limits under broadcasting regulations and effectively restricted market access for other cable operators, in violation of Section 4 of the Competition Act, 2002.
After examining the complaint, the CCI on February 28, 2022, formed a prima facie view that anti-competitive conduct may have occurred and directed its Director General to conduct a detailed investigation under Section 26(1) of the Act.
JioStar challenged this order before the Kerala High Court, arguing that the dispute fell squarely within the regulatory framework of the Telecom Regulatory Authority of India (TRAI) and that competition law was therefore inapplicable. Both a single judge and subsequently a Division Bench rejected this argument, holding that the CCI was competent to examine allegations of abuse of dominance even in regulated sectors.
Before the Supreme Court, JioStar reiterated its contention that the matter was governed by TRAI regulations. The court, however, held that the CCI’s preliminary investigation could proceed and clarified that questions relating to regulatory overlap or jurisdiction could be examined after the probe is concluded.
The ruling reinforces the CCI’s authority to pursue competition law investigations alongside sectoral regulators, particularly in cases involving alleged market foreclosure and abuse of dominance in India’s media and broadcasting landscape.
