Case Note & Summary
Star India Private Limited and Sony Pictures Network India Private Limited filed writ petitions challenging an order dated 27 July 2018 passed by the Competition Commission of India. The CCI had exercised powers under Section 26(1) of the Competition Act, 2002, directing an investigation against the broadcasters on a complaint by Noida Software Technology Park Limited. NSTPL, a HITS distributor, had entered into interconnect agreements with Star and Sony for offtake of TV channel bouquets, allegedly under protest. Disputes arose regarding compliance with TRAI's 2004 Interconnection Regulations and the pricing offered to distributors. NSTPL pursued remedies before TDSAT, filing petitions in 2014 and 2015, and obtained an order on 7 December 2015 directing broadcasters to issue fresh RIOs, which was upheld up to the Supreme Court. While these proceedings were ongoing, NSTPL also approached the CCI, which directed an investigation without awaiting the outcome of the TDSAT proceedings. The broadcasters contended that the CCI lacked jurisdiction or failed to apply its mind, given the sectoral regulator's oversight. The Bombay High Court heard arguments and reserved judgment on 28 August 2019. The provided extract of the judgment includes the factual background up to 2016; the court's reasoning and final decision are not included in this extract.
Issue of Consideration
Whether the CCI order dated 27 July 2018 under Section 26(1) of the Competition Act directing investigation against the broadcasters was valid, given the pending disputes before TDSAT and the regulatory framework of TRAI.
Law Points
- CCI's power under Section 26(1) of Competition Act
- TRAI's role in broadcasting sector
- TDSAT's jurisdiction over interconnection disputes
Case Details
2019 LawText (BOM) (10) 47
Writ Petition No. 9175 of 2018 and Writ Petition No. 10110 of 2018
Akil Kureshi, S.J. Kathawalla
D.J. Khambata (for Star), S.K. Cooper (for Sony), Somsekhar Sundaresan (for CCI), Zal Andhyarujina (for NSTPL)
Star India Private Limited (WP 9175/2018) and Sony Pictures Network India Private Limited (WP 10110/2018)
Competition Commission of India, Noida Software Technology Park Ltd., and the respective other broadcaster and Indian Broadcasting Foundation
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Nature of Litigation
Writ petitions under Article 226 challenging CCI's order directing investigation under Section 26(1) of Competition Act.
Remedy Sought
Petitioners sought quashing of CCI order dated 27 July 2018.
Filing Reason
CCI passed order on complaint by NSTPL alleging anti-competitive conduct by Star and Sony in offering interconnection agreements.
Previous Decisions
TDSAT order dated 7 December 2015 directing new RIOs; Delhi High Court and Supreme Court dismissed challenges; CCI order dated 27 July 2018.
Issues
Whether CCI's order under Section 26(1) of Competition Act should be set aside.
Judgment Excerpts
These Writ Petitions impugn an Order dated 27 th July, 2018 (“Impugned Order”) passed by Respondent No.1/Competition Commission of India (“CCI”) . By the Impugned Order, CCI has exercised its powers under Section 26(1) of the Competition Act, 2002 (“Competition Act”) and directed an investigation to be conducted against the Petitioners herein viz. Star India Private Limited (“Star”) and Sony Pictures Network India Private Ltd. (“Sony”) on the basis of a Complaint/Information fled by Noida Software Technology Park Limited (“NSTPL”) .
On 10 th December, 2004, the Telecom Regulatory Authority of India ('TRAI') notifed the Telecommunications (Broadcasting and Cable Services) Interconnection Regulations, 2004 ('2004 Regulations').
On 7 th December, 2015, TDSAT passed an Order and Judgment in the First TDSAT Petition (“7 th December, 2015 Order”) . Amongst various other fndings and directions, TDSAT directed all broadcasters to publish new RIOs in terms of the TRAI Regulations as interpreted by the TDSAT.
Procedural History
NSTPL entered into interconnect agreements with Star and Sony under protest. NSTPL filed Petition No. 295(C)/2014 before TDSAT challenging the RIO terms. Star RIO No.2 and Sony RIO No.2 were entered later, and NSTPL amended its petition to include those. Star issued disconnection notices for non-payment; NSTPL filed Petition No. 314(C)/2015 before TDSAT seeking to restrain disconnection. TDSAT granted interim relief and directed payment. TDSAT passed order on 7 Dec 2015 directing fresh RIOs. Star's appeals to Delhi High Court and Supreme Court failed. Meanwhile, CCI passed order on 27 Jul 2018 directing investigation under Section 26(1). Star and Sony filed writ petitions challenging that order.
Acts & Sections
- Competition Act, 2002: Section 26(1)
