In a significant legal blow to the newly formed media powerhouse, the Supreme Court of India officially cleared the way for a Competition Commission of India (CCI) investigation into JioStar on Tuesday, January 27, 2026.
A bench comprising Justices J.B. Pardiwala and Sandeep Mehta dismissed a plea by JioStar (the entity formed by the $8.5 billion merger of Reliance and Disney Star) that sought to halt the probe. The court emphasized that judicial interference at this “preliminary stage” was unwarranted and that the regulator must be allowed to investigate potential market abuse.
1. The Core Allegations: “Sham” Marketing Deals
The probe stems from a complaint by Asianet Digital Network Limited (ADNPL), a major cable operator in Kerala. The allegations include:
- Preferential Treatment: JioStar allegedly offered a rival operator, Kerala Communicators Cable Limited (KCCL), discounts exceeding 50%—far above the 35% ceiling mandated by TRAI.
- Circumvention of Rules: These discounts were reportedly funneled through “sham” marketing and promotional agreements, allowing JioStar to effectively return money to KCCL while appearing compliant on paper.
- Market Foreclosure: ADNPL claimed that this discriminatory pricing caused a massive migration of its subscriber base to KCCL within just six months, unfairly restricting market access.
2. The Jurisdictional Battle: TRAI vs. CCI
The primary defense used by JioStar (represented by senior advocate Mukul Rohatgi) was that the broadcasting sector is already governed by the Telecom Regulatory Authority of India (TRAI).
| Argument Layer | JioStar’s Defense | The Court’s Stance |
| Authority | Pricing and interconnection are strictly TRAI’s domain. | Sectoral oversight does not “immunize” firms from competition law. |
| Legal Basis | Sectoral regulators must decide “jurisdictional facts” first. | CCI has the exclusive mandate to determine “Abuse of Dominance.” |
| Interference | The probe is a form of regulatory overreach. | The probe is preliminary and does not determine final guilt. |
3. Why This Matters: The Post-Merger Landscape
This ruling is the first major regulatory hurdle for JioStar since its formation in November 2024.
- Dominance Test: Because JioStar controls nearly all major Malayalam channels and exclusive rights to the IPL and international cricket, the CCI will investigate if it is using this “must-have” content to crush smaller distributors.
- Precedent for Regulated Sectors: The Supreme Court’s refusal to intervene reinforces that the CCI can investigate anti-competitive conduct even in heavily regulated sectors like telecom, pharma, and energy.
4. What Happens Next?
The Supreme Court’s dismissal upholds the Kerala High Court’s earlier directive, which set a strict timeline for the investigation.
- 8-Week Deadline: The CCI’s Director General has been directed to complete the investigation within eight weeks.
- Preliminary Jurisdictional Order: The CCI must first issue a “reasoned and speaking order” specifically addressing whether it has jurisdiction over these marketing agreements before moving to a final judgment.
Conclusion: A Check on Media Consolidations
The Supreme Court’s decision signals that massive consolidations will not provide a shield against antitrust scrutiny. For JioStar, the next two months will be critical; if the Director General finds evidence of “sham” agreements, the company could face penalties of up to 10% of its average turnover under Section 27 of the Competition Act.
