In a significant setback for Reliance Industries–owned media company JioStar, the Supreme Court on Tuesday refused to stay an ongoing investigation by the Competition Commission of India (CCI) into alleged abuse of market dominance in Kerala’s television distribution sector.
A bench comprising Justice J.B. Pardiwala and Justice Sandeep Mehta dismissed JioStar’s petition, stating that the matter was still at a preliminary stage and there was no justification to interfere with the regulator’s inquiry.
“It is only an investigation at a preliminary stage. Let the regulator proceed,” the bench observed while rejecting the plea.
The ruling clears the path for the CCI to complete its probe within eight weeks, as earlier directed by the Kerala High Court.
What Is the Case About?
The case originates from a complaint filed by Asianet Digital Network, one of Kerala’s largest cable and television distributors. Asianet has accused JioStar of abusing its dominant position by offering discriminatory pricing and preferential discounts to a rival distributor, Kerala Communicators Cable Ltd (KCCL).
Asianet alleges that JioStar controls a substantial share of the state’s television market due to its ownership of popular Malayalam entertainment channels and exclusive broadcast rights for marquee sporting events, including the Indian Premier League (IPL) and international cricket.
Allegations of Discriminatory Discounts
Under Telecom Regulatory Authority of India (TRAI) norms, broadcasters are permitted to offer discounts of up to 35%, provided pricing remains non-discriminatory.
However, Asianet claims that JioStar extended effective discounts exceeding 50% to KCCL through separate marketing and promotional agreements. According to the complaint, these arrangements were merely a façade to bypass regulatory limits.
As a result, KCCL allegedly gained access to channels at significantly lower costs, enabling it to offer cheaper subscription packages, attract more subscribers, and expand its market presence—while Asianet continued to pay higher rates for the same content.
CCI’s Stand and Legal Journey
In February 2022, the CCI formed a prima facie view that the allegations warranted a detailed investigation and directed its Director General to conduct a probe, clarifying that this did not amount to a finding of guilt.
JioStar challenged the CCI’s jurisdiction, arguing that pricing and contractual issues in broadcasting fall under the TRAI Act and should be adjudicated by the Telecom Disputes Settlement and Appellate Tribunal (TDSAT). The company also accused Asianet of forum shopping.
The CCI countered that the Competition Act operates alongside sectoral laws and that the presence of a regulator does not bar the commission from examining abuse of market power.
The Kerala High Court, first through a single judge in May 2025 and later via a division bench on 3 December 2025, upheld the CCI’s decision. The Supreme Court has now affirmed this position.
About JioStar and Its Market Position
JioStar was formed in November 2024 following an $8.5 billion merger between Reliance’s media assets and The Walt Disney Company’s India operations. The deal brought together Viacom18, JioCinema, Star India, and Disney+ Hotstar under one umbrella.
Reliance Industries holds a 63% controlling stake, while Disney owns approximately 36.84%.
According to JustWatch data for April–June 2025, JioStar’s streaming platform JioHotstar led India’s subscription video-on-demand market with a 25% share, ahead of Amazon Prime Video, Netflix, Apple TV+, ZEE5, and Sony LIV.
Why This Ruling Matters
The Supreme Court’s decision reinforces the CCI’s authority to investigate competition concerns, even in sectors governed by specialized regulators. It also signals heightened scrutiny of pricing practices in India’s rapidly consolidating media and broadcasting industry.
The outcome of the investigation could have broader implications for how broadcasters structure discounts, partnerships, and market strategies across the country.