Disney Star India has filed a writ petition before the Kerala High Court challenging the investigation launched by the Competition Commission of India (CCI) and the subsequent summons issued by the competition watchdog in the matter.
The CCI investigation was initiated based on a complaint filed by the multi-system operator (MSO) Asianet Digital Network on the grounds of violation of the Telecom Regulatory Authority of India's (TRAI) new tariff framework. The broadcaster has contended that the matter falls outside of the jurisdiction of the CCI.
Initially, the Bombay High Court had granted interim protection to the broadcaster vide its order dated 6th April. However, the Bombay High Court disposed of the Writ Petition on 16th September while granting liberty to the broadcaster to approach the appropriate forum possessing territorial jurisdiction.
The Bombay High Court further extended the interim protection granted to Star India and its affiliates for another 10 days. Star India, Disney, and Asianet Star filed fresh Writ Petitions before the Kerala High Court challenging CCI’s order directing the investigation and the summons dated 5th September.
Additional Solicitor General N Venkataraman, who appeared for CCI, requested that the matters may be listed on 23rd September. The ASG also gave an undertaking to the court that CCI will not take any coercive steps till Friday.
The matters are now listed for 23rd September.
The CCI had directed an investigation against Star India, Asianet Star, and Disney Broadcasting India on the basis of information filed by Asianet Digital Network, which has operations in Kerala, Karnataka, Telangana, and Andhra Pradesh.
The MSO alleged that Disney Star is circumventing the new regulatory framework by granting additional discounts to its competitor Kerala Communicators Cables Limited (KCCL). It was alleged that Disney Star entered into marketing agreements with KCCL whereby the latter gets paid for advertising.
Disney Star rejected this claim by arguing that the subscription agreement and marketing agreement are two independent transactions. It also argued that Asianet Digital Network is attempting to link two different transactions with mala fide intentions.
