Sep 30, 2024

CCI Dismissed Allegations of Cartelization and Abuse of Dominance by Cable TV Operators

Parties

The information was filed by M/s Vande Mataram Cable TV Network and Jaipal Singh Gulati (collectively ‘Informants’) against the Union of India through the Secretary, Information & Broadcasting (‘OP-1’), the State of Chhattisgarh through its Principal Secretary, Home Department (‘OP-2’), the Principal Commissioner, Central GST and Central Excise Commissionerate (‘OP-3’), the Commissioner, Commercial Tax GST, Government of Chhattisgarh (‘OP-4’), Taranjeet Singh Hora (‘OP-5’), Gurucharan Singh Hora (‘OP-6’), M/s Grand Vision Television Network (‘OP-7’), M/s Star Television (‘OP-8’) and M/s Zee Television (‘OP-9’) (collectively ‘OPs’). [1]

Submissions by Informant

The Informants alleged that: (i) OP-5 and OP-6, along with political and influential associates, used police intimidation to monopolise the cable TV network business in Chhattisgarh; (ii) OP-5, OP-6, and OP-7 forced transfer of rights from other cable operators through void agreements contrary to the Act; (iii) OP-8 and OP-9 disrupted signal supply financially crippling smaller operators; and (iv) OP-5 and OP-6 misappropriated and seized over INR 50 crores (approx. USD six million) from the cable network business in Chhattisgarh through evasion of Goods and Sales Tax & Income Tax and money laundering.

Findings by CCI

The CCI observed that: (i) the relationship between the parties and the facts did not warrant the application of Section 3 of the Act, as no agreement to restrict competition between similar entities was proven; and (ii) Informants have claimed violations of Section 4 of the Act against all OPs, however it is established that the Act does not allow inquiries into cases of joint or collective dominance.

Since no prima facie case of contravention of the provisions of the Act was made out, the CCI dismissed the matter under Section 26(2) of the Act.

 

[1] In Re: M/s Vande Mataram Cable TV Network & Others and Union of India & Others, Case No. 19 of 2024.

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