Today, on 27th January, In a setback for JioStar, the Supreme Court refused to halt the Competition Commission of India’s probe into alleged abuse of dominance and discriminatory pricing in Kerala’s television distribution market, holding the investigation remains preliminary and must continue lawfully.
NEW DELHI: In a setback for JioStar, the streaming service owned by Reliance Industries Ltd, the Supreme Court dismissed its petition to stop the Competition Commission of India’s (CCI) investigation into alleged abuse of dominance and discriminatory pricing within Kerala’s television distribution sector.
A bench comprising Justices J.B. Pardiwala and Sandeep Mehta stated that the matter is still in its preliminary phase and that the regulator should be allowed to proceed with its investigation.
While rejecting the plea, The bench remarked that,
“Sorry, dismissed. Let the regulator investigate. It is only at a preliminary stage. It is only an investigation,”
JioStar had contested a December 3, 2025, ruling from the Kerala High Court, which declined to halt the CCI inquiry and instructed the regulator to complete its investigation within eight weeks.
Factual Background of The Case:
The issue originated from a complaint by Asianet Digital Network, a significant cable and television provider in Kerala. Asianet accused JioStar of holding a dominant position in the state due to its control over popular Malayalam entertainment channels and exclusive rights to major sporting events, including the IPL and international cricket.
Asianet alleged that JioStar abused this dominance by providing preferential and discriminatory discounts to its competitor Kerala Communicators Cable Ltd (KCCL), while denying similar terms to other distributors. Under Telecom Regulatory Authority of India (Trai) regulations, broadcasters are permitted to offer discounts of up to 35% and must adhere to a non-discriminatory pricing policy.
Asianet claimed that JioStar effectively granted discounts exceeding 50% to KCCL through separate marketing or promotional agreements, which it characterized as bogus arrangements.
These agreements allegedly allowed KCCL to acquire channels at considerably lower prices, enabling it to offer more affordable packages, attract subscribers and local cable operators, and capture market share, while Asianet had to pay higher rates for the same content.
In February 2022, the CCI determined that the allegations warranted further investigation and instructed its director general to carry out a detailed probe, clarifying that this did not imply any presumption of guilt.
After the CCI ordered an investigation under Section 26(1) of the Competition Act, Star India moved the High Court saying that only the Telecom Regulatory Authority of India (TRAI) had the power to look into issues related to interconnection and pricing, not the CCI.
A single judge of the Kerala High Court upheld the CCI’s ruling in May 2025, a decision later affirmed by a division bench on December 3, 2025.
Although the appeal was rejected, the Court made an important direction regarding jurisdiction. It said that the CCI must first examine and decide whether it actually has the authority to deal with this matter before going ahead with the probe.
JioStar challenged the CCI’s order on jurisdictional grounds, contending that pricing and contractual matters in broadcasting should be governed by the Trai Act and settled by the Telecom Disputes Settlement and Appellate Tribunal, accusing Asianet of seeking favorable forums. The CCI argued that the Competition Act operates in conjunction with sectoral regulations, and its role in examining the abuse of market power remains intact, even if the sector is regulated.
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Earlier Order of the Kerala High Court:
Earlier, the Kerala High Court stated:
“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 judges further clarified that the CCI can delay looking into the case if it concludes that TRAI is the proper authority to examine the issues raised.
But if the CCI believes it does have jurisdiction, the Court said it must then issue a detailed and reasoned order on the complaint filed by Asianet.
The Court also fixed a strict timeline for this process and directed that,
“The entire exercise will be carried out within an outer limit of 8 weeks from the date of receipt of certified copy,”
The also Court stated:
“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 judges further clarified that the CCI can delay looking into the case if it concludes that TRAI is the proper authority to examine the issues raised.
But if the CCI believes it does have jurisdiction, the Court said it must then issue a detailed and reasoned order on the complaint filed by Asianet.
This led JioStar to appeal to the Supreme Court, which has now also opted not to intervene, allowing the CCI investigation to proceed within the eight-week timeline established by the Kerala High Court.
At the very beginning, Senior Advocate Mukul Rohatgi, appearing for Jiostar, argued that the company operates under the Telecom Regulatory Authority of India Act, 1997 (TRAI), which prescribes the framework for pricing and discounts.
He stated,
“Question is, can you investigate in relation to a matter covered by the sectoral regulator. There is a judgment of the Bombay High Court in my favour.”
In response, Justice Pardiwala observed that the probe was still at a preliminary stage and declined to intervene, remarking,
“It needs to be looked into, Mr Rohatgi.”
JioStar was established in November 2024 following the merger of Reliance’s media business with The Walt Disney Company’s operations in India as part of an 8.5 billion Dollars deal, integrating Viacom18 and JioCinema with Star India and Disney+ Hotstar. Reliance holds approximately a 63% controlling stake, while Disney owns about 36.84%.
As of April-June 2025, data from JustWatch indicated that JioStar’s platform JioHotstar led India’s subscription video-on-demand market with around a 25% share, followed closely by Amazon Prime Video (23%), Netflix (19%), Apple TV+ (14%), ZEE5 (10%), and Sony LIV (5%).
Case Title: JIOSTAR INDIA PRIVATE LIMITED v COMPETITION COMMISSION OF INDIA AND ORS. SLP(C) No. 2867/2026
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