The Bombay high court on 16th October set aside an order passed last July by the Competition Commission of India (CCI) against Star TV and Sony TV over alleged price discrimination. The CCI had ordered an investigation into the conduct of the two broadcasters after a distributor of TV channels alleged price discrimination by the two.
Star and Sony argued that the CCI lacked jurisdiction to pass such an order for investigation because the broadcasters were regulated by TRAI and TDSAT. They also said, the CCI failed to apply the correct test and relevant factors mandated by the Competition Act to determine if a broadcaster had caused an adverse effect on competition.
The high court on 16th October held that the CCI had applied a wrong test to determine the anti-competitive conduct.