New Delhi: The Competition Commission of India (CCI) has ordered for a probe into the conduct of broadcasters Star TV and Sony Pictures Networks based on the allegation from distributor of TV channels, Noida Software Technology Park Ltd. (NSTPL)stating that the duo discriminated against it by demanding “exorbitant” prices when it requested permission to relay their channels.
In an order delivered on Friday, CCI chairperson Sudhir Mittal instructed the antitrust watchdog’s director-general (DG) to inquire into the conduct of the two TV broadcasters which it stated appeared “prima facie” in contravention to certain rules governing anticompetitive behaviour.
It also directed the DG to look into the role of people or executives who were in charge of and responsible for the conduct of the business of the two networks at the time of the alleged anticompetitive dealings took place.
(NSTPL), a distributor that relays channels of TV broadcasters through a technology termed Headend in the Sky (HITS), complained to the CCI that the two companies made its business “hugely unviable” by the nature of the commercial terms offered to it.
It also alleged that the broadcasters had interests in the distribution of TV channels and were vertically integrated with large distributors through their investments. 21st Century Fox, the parent company of Star TV, has a stake in DTH provider Tata Sky. NSTPL alleged collusion and cartelisation by Star, Sony and the Indian Broadcasting Foundation (IBF).
Though the CCI negated allegations pertaining to cartelisation, it noted that the two networks had significant market power and interests in the distribution of TV channels.
The two broadcasters denied any wrongdoing in arguments made by a team of lawyers led by Abhishek Manu Singhvi and AN Haksar, while Advocate Vivek Chib represented NSTPL.
