Basil
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Star India Arguement
TRAI Arguement
Supreme Court
Full Judgement
- Star India had contended that the impugned clauses have the effect of regulating programmes and television channels, their pricing and their marketing and manner of offering/ bundling, which is beyond the scope of TRAI’s jurisdiction of regulating “means of transmission”.
- They contended that TRAI Act is carriage centric and thus limited to regulation of service in transmission alone.
- According to them, tariff, which relates to content, is governed by the Copyright Act and not by the TRAI Act.
- The aforesaid regulations are outside the power of TRAI under the TRAI Act and must thus be struck down.
TRAI Arguement
- TRAI Act was conceived in the public interest in order to protect the interests of both service providers.
- He further argued that the appellants (Star India) in the present case had been taking contradictory stands throughout. As an example of such stand, he referred to an Order of the Competition Commission of India dated 27.2.2018, in which he referred to the stand of the appellants stating that the Competition Commission had no jurisdiction to look into pricing and the manner of offering TV channels, which lies in the domain of the sectoral regulator TRAI and is, therefore, an occupied field.
- TRAI doesn't seek to or in fact regulate content of what is broadcasted so that any reference to this Act would be wholly irrelevant for the purpose of deciding this case.
Supreme Court
- We are of the view that the provisions of the TRAI Act have to be viewed in the light of protection of the interests of both service providers and consumers.
- It is interesting to note, as has been stated by Shri Dwivedi, that in Star India’s response to the consultative paper of 29.1.2016, Star India itself has requested that the Regulation and Tariff Order be fixed on the basis of the principles that are now contained therein.
- It is only when TRAI issued a second consultation paper dated 4.5.2016 that Star India submitted its response in June, 2016 where it raised for the first time the issue relating to the Copyright Act as an afterthought. What is important to notice is that even in this response, Star India reiterated that discount caps should be provided for as this checks discriminatory behavior during negotiation and will facilitate designing of discount criteria based on intelligible differentia which will help serve the diverse needs of consumers. In a third response to the draft regulations and tariff order, Star India raised jurisdictional issues of TRAI.
- We are, therefore, clearly of the view that the Regulation and the Tariff Order have been made keeping the interests of the stakeholders and the consumers in mind and are intra vires the regulation power contained in Section 36 of the TRAI Act.
- TRAI, while exercising its regulatory functions under the TRAI Act, does not at all, in substance, impinge upon any of these rights, but merely acts, as has been stated hereinabove, as a regulator, in the public interest.
Full Judgement