The broadcasters — all owned by the Walt Disney Company — had approached the high court to challenge the order of the antimonopoly watchdog, which had directed an investigation against them in a complaint filed by ADNPL, a Kerala-based cable TV network company.
After issuing the direction to the CCI, a division bench of Justices GS Patel and Madhav Jamdar on Wednesday adjourned the case to June 8.
In its complaint to the CCI, ADNPL had alleged that the three broadcasters had abused their position of dominance in the market by providing significant discounts through cashback to Kerala Communicators Cables Ltd, a direct competitor of ADNPL.
The CCI had directed its director-general to investigate the matter.
The high court said it was yet to be determined whether the complaint was correct or not.
Senior advocate Darius Khambata, appearing for the broadcasters, argued that the CCI decision was entirely bad and could not be sustained. Advocate Somsekhar Sundaresan, appearing for the CCI, raised a point over the jurisdiction of the court to hear the case.
Senior counsel Navroz Seervai, representing ADNPL, argued that the broadcasters had given Kerala Communicators discounts in addition to the maximum permitted by sector regulator Telecom Regulatory Authority of India, but these had been disguised in marketing and advertising agreements. This was the reason the company approached the CCI, he said.
“We believe that CCI must be afforded an opportunity of placing its case fully before the court,” observed the court in its 12-page order. “In the meantime, the petitioners in all three cases will, on a without-prejudice and no-equities basis, furnish to the director-general (of the CCI) such documentary material and information as he has called for or in response to his queries.”
The court has also directed the antitrust regulator to keep the information provided by the broadcasters confidential.
