Supreme Court Rejects JioStar Plea, Allows CCI Investigation to Proceed
In a significant legal development, the Supreme Court of India has dismissed a plea by Reliance Industries Ltd-owned streaming platform JioStar, which sought to halt an investigation by the Competition Commission of India (CCI) into alleged abuse of dominance and discriminatory pricing in Kerala's television distribution market. This decision represents a setback for JioStar, as the court has allowed the regulatory probe to continue, emphasizing the preliminary nature of the investigation.
Court's Rationale and Timeline for Investigation
A bench comprising Justices J.B. Pardiwala and Sandeep Mehta delivered the verdict, stating that the matter is at a preliminary stage and the regulator should be permitted to proceed with its inquiry. The bench observed, "Sorry, dismissed. Let the regulator investigate. It is only at a preliminary stage. It is only an investigation," while rejecting the plea. The Supreme Court has directed the CCI to complete its investigation within eight weeks, a timeframe originally set by the Kerala High Court in its earlier order.
Background of the Case and Allegations
The case originated from a complaint filed by Asianet Digital Network, a prominent cable and television distributor in Kerala. Asianet alleged that JioStar holds a dominant position in the state's market due to its control over popular Malayalam entertainment channels and exclusive broadcasting rights for major sporting events, including the Indian Premier League (IPL) and international cricket matches.
According to Asianet, JioStar abused this dominance by offering preferential and discriminatory discounts to rival Kerala Communicators Cable Ltd (KCCL), while denying similar terms to other distributors. Under Telecom Regulatory Authority of India (Trai) regulations, broadcasters can offer discounts of up to 35% and must adhere to a non-discriminatory pricing regime. Asianet claimed that JioStar effectively granted discounts exceeding 50% to KCCL through separate marketing or promotional agreements, which it described as sham arrangements.
These alleged agreements allowed KCCL to obtain channels at significantly lower effective prices, enabling it to offer cheaper packages, attract subscribers and local cable operators, and gain market share. In contrast, Asianet had to pay higher rates for the same content, putting it at a competitive disadvantage.
Legal Proceedings and Jurisdictional Arguments
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 constitute a finding of guilt. JioStar challenged the CCI order on jurisdictional grounds, arguing that pricing and contractual disputes in broadcasting fall under the Trai Act and the Telecom Disputes Settlement and Appellate Tribunal, and accused Asianet of forum shopping.
The CCI countered that the Competition Act operates alongside sectoral regulation, and its mandate to examine abuse of market power is not invalidated merely because the sector is regulated. A single judge of the Kerala High Court upheld the CCI's decision in May 2025, a view later affirmed by a division bench on 3 December 2025. This prompted JioStar to approach the Supreme Court, which has now declined to intervene, allowing the investigation to proceed.
JioStar's Formation and Market Position
JioStar was established in November 2024 following the merger of Reliance's media business with The Walt Disney Company's India operations in an $8.5 billion deal. This merger combined Viacom18 and JioCinema with Star India and Disney+ Hotstar. Reliance holds a controlling stake of approximately 63%, while Disney owns around 36.84%.
According to JustWatch data for April-June 2025, JioStar's platform JioHotstar led India's subscription video-on-demand market with roughly a 25% share, followed by Amazon Prime Video (23%), Netflix (19%), Apple TV+ (14%), ZEE5 (10%), and Sony LIV (5%). This market dominance underscores the significance of the CCI probe into competitive practices in Kerala's television distribution sector.
The Supreme Court's decision reinforces the authority of regulatory bodies like the CCI to investigate potential anti-competitive behavior, ensuring a level playing field in India's rapidly evolving media and entertainment landscape. As the investigation unfolds over the next eight weeks, stakeholders will closely monitor its outcomes, which could have broader implications for competition law enforcement in regulated industries.
