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The Competition Commission of India (CCI) has cleared DEN Networks, finding no violation of competition law.
DEN Networks, a distributor of over 100 channels, faced allegations from Sobhagaya Media Pvt Ltd, a cable TV service provider, regarding excessive ‘carriage fees’ for broadcasting their channel ‘APN.’ However, CCI dismissed Sobhagaya Media’s complaint.
Sobhagaya Media also alleged that DEN Network was indulging in anti competitive conduct and contravening Section 3(4) and Section 4 of the Competition Act. However, CCI saw no merit in this allegation and has now concluded that there was no case for grant of any relief to the informant.
On the alleged conduct of DEN Networks in charging excessive carriage fee, the CCI has noted that Sobhagaya Media has not placed on record any evidence to substantiate its allegations. Further, the informant chose to not to file any rejoinder to the reply filed by DEN Networks, negating the contentions of Sobhagaya Media in this regard.
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CCI has in its order issued on Thursday concluded that DEN Networks does not appear to be dominant in the relevant market (market for cable TV service in Uttar Pradesh). In the absence of dominance of DEN in the relevant market, no case of contravention of the provisions of Section 4 of the Act can be made out, the CCI has said.
In arriving it’s assessment of dominance of DEN in the market for cable TV service in Uttar Pradesh, the CCI noted the presence of multiple MSOs in Uttar Pradesh indicating minimal entry barriers in the cable television sector.
Competition law can be considered violated when a dominant company exploits its market power to unfairly exclude competitors, manipulate prices, or engage in anti-competitive practices.
It is also violated when competitors or companies engage in agreements that restrict competition, such as price-fixing, market allocation, or bid-rigging.
The share of DEN Networks Ltd lost 0.95% to trade at ₹42.30 at 1.30 pm on NSE.
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