The Bench passed the order in writ petitions filed by the three petitioners challenging an order of CCI passed on February 28, 2022 directing its Director General to initiate investigation under Section 26 of the Competition Act based on a complaint by ADNPL.
ADNPL, which is in the business of distribution of TV channels to customers through local cable operators predominantly in Kerala, had contended in its complaint that broadcasters such as the petitioners, must not have discriminatory pricing in commercial contracts with multi-service operators such as ADNPL.
In the complain, ADNPL referred to the regulations of the Telecom Regulatory Authority of India (TRAI) and the Telecom Disputes Settlement and Appellate Tribunal (TDSAT).
The regulations prohibits discriminatory pricing in commercial contracts with multi-service operators.
ADNPL stated that the petitioners by abusing their position of dominance, provided significant discounts to a direct competitor through allied agreements that apparently offered a cashback system.
The petitioners intended to bypass the TRAI/TDSAT set-caps or upper limits with an intend to provide unfair advantage to ADNPL’s competitor.
In view of this, CCI ordered the Director General to conduct an investigation and submit a report within 60 days.
The same came to be challenged before the High Court.
Source: Barandbench
