The Supreme Court on Tuesday refused to interfere with an order of the Kerala High Court that permitted the Competition Commission of India (CCI) to proceed with an investigation into allegations of abuse of dominant position in the Kerala television broadcasting market by Jiostar Private Limited.
The challenge before the Apex Court arose from a complaint filed by Asianet Digital Network Limited (ADNPL), a digital cable television service provider, alleging contraventions of Sections 4(2)(a)(i) and 4(2)(c) of the Competition Act, 2002.
ADNPL has accused Jiostar, one of the largest broadcasters in the country, of engaging in discriminatory pricing, excessive discounting, and granting preferential commercial treatment to Kerala Communicators Cable Limited (KCCL), thereby distorting competition in the downstream distribution market.
The Bench of Justice JB Pardiwala and Justice Sandeep Mehta refused to entertain Jiostar’s appeal, noting that the CCI’s inquiry was still at a nascent, prima facie stage. The Court underscored the settled principle that judicial interference at the stage of a Director General’s investigation was unwarranted unless jurisdictional errors or manifest illegality were demonstrated.
Jiostar, formerly known as Star India Private Limited, has challenged the Kerala High Court judgment of December 3, 2025, which affirmed the refusal of a single-judge Bench to stay the CCI’s investigation.
The High Court held that allegations of market abuse, even in a regulated sector, fell squarely within the CCI’s remit, consistent with the Competition Act’s mandate to preserve competitive market structures.
Appearing for Jiostar, Senior Advocate Mukul Rohatgi contended that the broadcaster’s pricing and discounting practices were governed by the Telecom Regulatory Authority of India Act, 1997, and the regulatory framework framed thereunder. He argued that the Telecom Regulatory Authority of India (TRAI), as the sectoral regulator, had prescribed tariff ceilings and discount structures, thereby ousting the CCI’s jurisdiction. Reliance was placed on earlier judicial precedents recognising regulatory primacy in sector-specific matters.
The Bench, however, reiterated that regulatory oversight by TRAI did not immunise market participants from scrutiny under competition law. The Court observed that the CCI is statutorily empowered to examine whether conduct, even if ostensibly compliant with sectoral regulations, results in appreciable adverse effects on competition.
The controversy stems from the implementation of the Telecommunication (Broadcasting and Cable) Services Interconnection (Addressable Systems) Regulations, 2017, which capped the maximum retail price of pay channels and limited cumulative discounts to distributors to 35 percent under Regulations 3(2), 7(3), and 7(4). ADNPL alleged that Jiostar circumvented these limits by extending discounts exceeding 50 percent to KCCL through indirect mechanisms.
According to the complaint, these benefits were structured as promotional and advertising payments linked to so-called test channels, on which promotional content and advertisements were broadcast continuously. ADNPL claimed that this preferential arrangement led to a significant migration of subscribers from its network to KCCL within a span of five to six months, thereby foreclosing competition and consolidating KCCL’s market position.
Acting on ADNPL’s information under Section 19 of the Competition Act, the CCI formed a prima facie opinion and directed its Director General to conduct a detailed investigation into Jiostar’s conduct.
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