Kerala High Court dismisses JioStar’s appeal against CCI probe over discriminatory discounts

The Kerala High Court on Wednesday dismissed JioStar's appeal against Competition Commission of India (CCI) 's probe into allegations that the broadcaster favoured Kerala Communicators Cable Ltd (KCCL) in pricing of channels [Jiostar India Private Limited Vs Competition Commission of India]..A Division Bench comprising Justice SA Dharmadhikari and Justice Syam Kumar upheld a single judge's verdict allowing the CCI to continue its investigation.Asianet Digital Network Pvt Ltd had filed a complaint before CCI alleging that Star India, which is now known as JioStar, was extending indirect discounts to KCCL through marketing arrangements in breach of TRAI’s Interconnection Regulations. After the CCI ordered an investigation under Section 26(1), Star India had challenged the directive, arguing that only Telecom Regulatory Authority of India (TRAI) could examine such issues. A single-judge in May 2025 dismissed Star India's plea, leading to an appeal..The Division Bench dismissed the appeal today after finding no ground for interference with the single-judge's decision.However, the Court also directed that the question of jurisdiction raised by JioStar must be determined first by CCI and that a separate reasoned order must be passed on the aspect by the competition watchdog.“CCI must decide as a preliminary point its jurisdiction to take up the whole matter and proceed with it in the face of specific provisions of TRIA-Regulations, especially Regulation 7, violation of which has been alleged,” the Court directed..The Court further said that CCI may defer consideration of the matter if it comes to the conclusion that TRAI would have the jurisdiction to examine the issues. If CCI decides otherwise, the Court directed that it shall then pass a reasoned order on the complaint moved by Asianet.“The entire exercise will be carried out within an outer limit of 8 weeks from the date of receipt of certified copy," the Court ordered.A detailed copy of the judgment is awaited..On the main contentions, the Court directed the CCI to proceed on the basis of Director General's report and provide sufficient opportunity of hearing to all the stakeholders.“Thereafter, it must proceed to pass a reasoned and speaking order, considering all the contentions of various parties," the Court added..Following the pronouncement of the verdict, JioStar asked the Court to keep the judgment in abeyance for four weeks so that it could approach the Supreme Court. However, the counsel appearing for Asianet opposed the request, arguing that extending the earlier interim order would only lead to further delay and defeat the Court’s eight-week timeline for the CCI to conclude the process. The bench did not immediately pass any order on JioStar's request..Follow Bar and Bench channel on WhatsAppDownload the Bar and Bench Mobile app for instant access to the latest legal news.