CCI Passes Lesser Penalty Provisions Against Broadcasting Service Providers (Download PDF)

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Case was taken up by Competition Commission of India (‘CCI’) under Section 19 of Competition Act, 2002 (‘the Act’) based on disclosure by Globecast India Private Limited & Globecast Asia Private Limited under Section 46 of Act read w/Competition Commission of India Regulations, 2009 (‘Lesser Penalty Regulations’).

Image of CCI Passes Lesser Penalty Provisions

Image of CCI Passes Lesser Penalty Provisions

Image of CCI Passes Lesser Penalty Provisions

Lesser penalty provision is to encourage people to disclose to the CCI with information regarding a cartel arrangement.

  • Essel Shyam Communication Limited (ESCL), now Planetcast Media Services Limited, approached CCI as lesser penalty applicant during investigation.

  • CCI imposed penalty on Globecast, subsidiary of Orange Group (earlier France Telecom Group), global service provider of broadcasting services & ESCL, technology service provider in India since 1998.

  • CCI imposed w/specialization in media broadcasting, for indulging in bid-rigging in tenders floated by sports broadcasters for procurement of end-to-end broadcasting services for various sporting events during July 2011- May 2012 including Indian Premier League 2012 (IPL-2012).

  • CCI found that ESCL & Globecast operated cartel amongst them in various sporting events held during years 2011 - 12 including IPL-2012.

  • While submitting bids for tender floated by various broadcasters during July 2011- May 2012 for provision of end-to-end broadcasting services, they exchanged information & quoted bid prices as per arrangements arrived at amongst them.

  • As result, they committed infringement of provisions of Section 3 (3) (d) read w/Section 3 (1) of Act during this period.

  • Considering totality of facts & circumstances of case, penalty leviable on individual officials of Globecast & ESCL was computed at rate of 10 % of average of their income for preceding 3 years.

  • Stage at which lesser penalty application was filed, co-operation extended in conjunction w/value addition provided by evidences furnished by lesser penalty applicants in establishing existence of cartel, CCI granted Globecast & its individuals 100 % reduction in penalty & 30 % reduction in penalty to ESCL & its individuals.

Competition Commission of India (CCI)

  • Formed – 2003

  • Headquarter – New Delhi

  • Commission was preceded by Monopolies & Restrictive Trade Practices Commission

  • CCI is composed of as Chairperson & 6 members, members are appointed by Central Govt.

  • CCI acts as market regulator to check on ill competitive practices in India.

  • Objective of Competition Commission of India (CCI)

    • Remove negative competitive practices

    • Promote sustainable market competition

    • Protect rights of consumer

    • Protect freedom of trade in Indian markets

    • Protect rights of small traders from large traders to ensure their survival

    • Advice & give suggestions to Competition Appellate Tribunal

    • Run informative campaigns & create public awareness about fair competitive practices.

- Published/Last Modified on: October 1, 2018

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