JioStar Approaches Supreme Court Over CCI Investigation in Kerala
In a significant legal development, JioStar, the streaming platform owned by Reliance Industries, has approached the Supreme Court to challenge the Competition Commission of India's (CCI) investigation into alleged abuse of dominance and discriminatory pricing practices within Kerala's television distribution market. The company is contesting a December 3, 2025 order from the Kerala High Court, which declined to halt the CCI's probe and mandated its completion within an eight-week timeframe.
Background of the Case
The controversy stems from a complaint filed by Asianet Digital Network, a prominent cable and television distributor operating in Kerala. Asianet has accused JioStar of leveraging its dominant market position, which includes control over several popular Malayalam entertainment channels and exclusive broadcasting rights to major sporting events like the Indian Premier League (IPL) and international cricket matches.
According to Asianet's allegations, JioStar engaged in discriminatory practices by offering preferential discounts to a rival distributor, Kerala Communicators Cable Ltd (KCCL), while denying similar terms to other market participants. Under the Telecom Regulatory Authority of India's (Trai) regulations, broadcasters are permitted to provide discounts only up to 35% and must adhere to a non-discriminatory pricing framework.
However, Asianet contends that JioStar effectively granted KCCL discounts exceeding 50% by channeling funds through separate marketing or promotional agreements. These arrangements, Asianet claims, were a sham mechanism designed to funnel money back to KCCL, thereby enabling it to access channel content at significantly lower effective prices.
Legal Proceedings and Jurisdictional Disputes
Following an examination of the complaint, the CCI in February 2022 identified a prima facie case and directed its director general to initiate a detailed investigation. The regulator emphasized that this step was preliminary and did not constitute a finding of guilt against JioStar.
JioStar subsequently challenged the CCI's order in the Kerala High Court, primarily on jurisdictional grounds. The company argued that the dispute revolves around pricing and contractual matters governed by the Trai Act and the 2017 Broadcasting Regulations. Since conflicts between broadcasters and distributors fall under the purview of Trai and the Telecom Disputes Settlement and Appellate Tribunal, JioStar contended that the CCI should not have intervened. Additionally, the company accused Asianet of forum shopping by circumventing the telecom regulator.
In response, the CCI maintained that the Competition Act remains applicable even within regulated sectors, and its authority to investigate abuse of market power is not negated by the presence of another industry regulator.
Court Rulings and Escalation to Supreme Court
In May 2025, a single judge of the Kerala High Court upheld the CCI's investigation order, ruling that competition law can operate concurrently with sectoral regulations. The court clarified that Trai's oversight does not preclude a probe into alleged abuse of dominance and discriminatory pricing. It noted that the CCI's directive was merely a preliminary measure and that JioStar could present all its objections during the inquiry process.
JioStar's appeal was later dismissed by a division bench of the Kerala High Court on December 3, 2025, which concurred with the single judge's decision and permitted the CCI's investigation in the Kerala market to proceed. This ruling prompted JioStar to escalate the matter to the Supreme Court, where a bench led by Justice J.B. Pardiwala is scheduled to hear the appeal on Tuesday, January 27.
Market Context and JioStar's Formation
JioStar was established in November 2024 following the merger of Reliance Industries' media business with The Walt Disney Company's India operations, a deal valued at approximately $8.5 billion. This joint venture consolidated Viacom18 and JioCinema with Star India and Disney+ Hotstar. Reliance holds a controlling stake of around 63%, with Disney owning about 36.84%, granting Reliance management control over the company.
According to JustWatch data for the April-June quarter of 2025, JioStar's streaming platform, JioHotstar, leads India's subscription video-on-demand market with approximately a 25% share. Other major players include Amazon Prime Video at about 23%, Netflix at 19%, Apple TV+ at roughly 14%, ZEE5 at 10%, and Sony LIV at 5%, with other platforms accounting for the remaining 4%.
Email inquiries sent to Reliance Industries seeking their response on the matter remained unanswered at the time of publication.
