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PRESS TRUST OF INDIA
New Delhi, July 19: The Monopolies and Restrictive Trade Practices Commission (MRTPC) has rejected a complaint filed by Hinduja-owned Incable Network alleging Zee Cinema's indulgence in restrictive trade practices.
Complainant IndusInd Media and Communications has alleged that Zee TV arbitrarily switched off the Incable decoder receiving Zee Cinema signals and system of fixing subscription charges payable by cable operators, which constituted a restrictive trade practice.
In an interim order, MRTPC rejected the Incable contention that charges payable by cable operators to the channels should be the same irrespective of whether operators transmit it to 100 or 500 subscribers.
The commission said the argument that charges can not be linked with the number of subscribers (connectivity) was not acceptable.
"On the basis of material presented before us, prima facie it appears that at present the practice in the cable industry is to link the subscription charges to the number of subscribers," the commissionadded. Counsel for Zee Cinema, Prathibha M Singh and Maninder Singh contended that Incable Network itself provided connections to cable operators and was charging subscription on the basis of connectivity alone.
Zee counsel said, "since the complainant itself is charging and recovering subscription on the basis of connectivity, under the doctrine of equitable estoppel alone, the complaint should be dismissed."
Incable alleged that Zee Cinema and Siti Cable were vertically integrated and Zee Cinema did not charge Siti Cable subscription fee on the same basis on which the complainant was charged, and therefore indulged in discriminatory pricing.
Zee counsel said if Incable was willing to subject itself to the conditions under which special rate had been extended to Siti Cable, the special rate could be made available to the complainant also.
Zee Cinema informed the commission that the Incable decoder, receiving Zee Cinema signals, was deactivated because the complainant did not declare the total numberof subscribers and refused to pay the charges based on connectivity. New Delhi, July 19: The Monopolies and Restrictive Trade Practices Commission (MRTPC) has rejected a complaint filed by Hinduja-owned Incable Network alleging Zee Cinema's indulgence in restrictive trade practices.
Complainant IndusInd Media and Communications has alleged that Zee TV arbitrarily switched off the Incable decoder receiving Zee Cinema signals and system of fixing subscription charges payable by cable operators, which constituted a restrictive trade practice.
In an interim order, MRTPC rejected the Incable contention that charges payable by cable operators to the channels should be the same irrespective of whether operators transmit it to 100 or 500 subscribers.
The commission said the argument that charges can not be linked with the number of subscribers (connectivity) was not acceptable.
"On the basis of material presented before us, prima facie it appears that at present the practice in the cable industry is to link the subscription charges to the number of subscribers," the commissionadded. Counsel for Zee Cinema, Prathibha M Singh and Maninder Singh contended that Incable Network itself provided connections to cable operators and was charging subscription on the basis of connectivity alone.
Zee counsel said, "since the complainant itself is charging and recovering subscription on the basis of connectivity, under the doctrine of equitable estoppel alone, the complaint should be dismissed."
Incable alleged that Zee Cinema and Siti Cable were vertically integrated and Zee Cinema did not charge Siti Cable subscription fee on the same basis on which the complainant was charged, and therefore indulged in discriminatory pricing.
Zee counsel said if Incable was willing to subject itself to the conditions under which special rate had been extended to Siti Cable, the special rate could be made available to the complainant also.
Zee Cinema informed the commission that the Incable decoder, receiving Zee Cinema signals, was deactivated because the complainant did not declare the total numberof subscribers and refused to pay the charges based on connectivity.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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