CCI imposes Rs 8-cr penalty on entities of Fast Way group
Anti-competition watchdog Competition Commission of India (CCI) has imposed a penalty of over Rs 8 crore on three entities of cable TV service operator Fast Way Group for abusing its dominant position in Punjab and Chandigarh.Updated: Jul 04, 2012 12:09 IST
Anti-competition watchdog CCI has imposed a penalty of over Rs 8 crore on three entities of cable TV service operator Fast Way Group for abusing its dominant position in Punjab and Chandigarh.
"The Competition Commission of India (CCI) has found Fast Way Group abusing its dominance in the cable TV service in the territory of Punjab and Chandigarh in violation of the provisions of the Competition Act, 2002," CCI said in a statement on Tuesday.
CCI has imposed penalty on the Group's entities - Fast Way Transmission, Hathway Sukhamrit Cable and Datacom, Creative Cable Network -- at the rate of 6% of their average turnover for the last three financial years, it added.
The order was passed after CCI carried out investigation on information filed by Kansan News that broadcasts news and current affairs TV channel 'Day and Night News' in Punjab, Haryana, Himachal and Chandigarh, the statement said.
The Commission held that the group has more than 85% of total subscribers in Punjab and Chandigarh and due to this not only every broadcaster, including the informant, is dependent on its network. Also the consumers of cable TV in Punjab and Chandigarh have huge dependency on Fast Way Group.
"They do not have any effective substitute to switch over to the other network. Abusing its market power, the Fast Way Group has denied the informant the opportunity for transmission of it channel on its network and thereby has effectively denied it access to the market," CCI said in the order.
CCI further directed the contravening multi-service operators to deposit the penalty amount within 90 days.
It has also directed the contravening entities to 'cease and desist' from indulging in anti-competitive practices which have the effect of denial of market access.