ORDER UNDER SECTION 27 OF THE COMPETITION ACT, 2002

1. The present matter relates to information received from M/s Kansan News Private Limited (hereinafter referred to as the "informant") on 18.07.2011 under Section 19(1) (a) of the Competition Act, 2002 (hereinafter referred to as "the Act") for alleged infringement of provisions of section 3 and section 4 of the Act.

2. The facts of the case as per the information, in brief, are as under:

2.1 The informant is broadcaster of a news and current affairs TV channel known as 'Day and Night News' (hereinafter referred to as "the Channel") and is operating in the states of Punjab, Haryana, Himachal Pradesh and Union Territory of Chandigarh. The Opposite Parties - M/s Fast Way Transmission Pvt. Ltd. (hereinafter referred to as "OP-1"), M/s Hathway Sukhamrit Cable & Datacom Pvt. Ltd. (hereinafter referred to as "OP -2") and M/s Creative Cable Network Pvt. Ltd. (hereinafter referred to as "OP -3") are the Multi System Operators (MSOs). The Opposite Party- 4 is operating in Punjab and Union territory of Chandigarh through the Opposite Party-3. Mr. Gurdeep Singh (hereinafter referred to as "OP-5") is the Managing Director of Opposite Party-1 and is directly managing and controlling the business affairs of the Opposite Parties- 1, 2 and 3. He is also indirectly managing and controlling the business affairs of Opposite Party-4.

2.2 It has been stated in the information that the Opposite Parties- 1, 2 and 3 have control over 95 % of the cable network distribution system in the State of Punjab and Union Territory of Chandigarh. The informant, citing the India Leadership Survey Report, has submitted that in the State of Punjab there are 43.18 lakh television viewers households, out of which approximately 35 lakh television viewers households have cable connections which are primarily provided by OP- 1 to OP- 4. The OP-5 is closely affiliated politically with ruling dispensation in the State of Punjab and has virtually finished and/or bought over all small cable operators and have taken the control of the cable network distribution business in Punjab. Any broadcaster who wishes to telecast and access the viewers in the State of Punjab has no other option but to approach the Opposite Parties-1 to 5 as they virtually control the entire cable network.

2.3 Referring to the Annual Returns filed by OP-1, OP- 2 and OP- 3 before the Registrar of Companies, it has been submitted that the Opposite Party-5 holds majority share of OP- 1, OP- 2, OP- 3 and OP- 4. Further, all agreements for and on behalf of Opposite Parties-1 to 4, including the agreements with the informant for carriage of their channel on the cable network of the Opposite Parties had been negotiated and entered into by OP-5. These facts, according to the informant show that the OP-5 runs, operates and controls the affairs of OP-1 to 3.

2.4 The informant has submitted that with substantial market share in the cable network distribution system in the state of Punjab and the Union Territory of Chandigarh, the Opposite Parties as a group have formed cartel and are abusing their dominant position by acting in an illegal, arbitrary and discriminatory manner, controlling the services of transmission and broadcasting of Television channels in the State of Punjab and Union Territory of Chandigarh, resulting in denial of market access to its channel, thus, violating section 4 of the Act.

2.5 The informant has further submitted that by illegally and simultaneously terminating the agreements for carriage of the channels of the informant, the Opposite Parties have acted as an association of enterprises and /or a cartel seriously and adversely affecting the competition by denying the broadcasting of news and current affairs channel of the informant in the State of Punjab and UT of Chandigarh in violation of section 3 of the Act.

2.6 As per the information, after entering into agreements with the informant for re-transmission of its channel OP-1, OP- 2 and OP-

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