Govt strives to improve school infrastructure in rural areas (See 'TOG News') National Waterway - Govt launches outreach campaign (See 'Corpbrief') Jaypee, IBBI ask SC to constitute fresh Committee of creditors (See 'Corpbrief') Govt makes National Pension System mandatory for new govt employees (See 'TOG News') Karnataka Bank launches DigiLocker facility Infosys Foundation inks MoU with Bangalore Metro to build & maintain the Electronics City Station Suzuki Motorcycle to invest Rs 600 cr in its second India plant Govt offers fiscal incentives to achieve 100GW solar power target (See 'TOG News') GST Law Amendments - Will Council make it more taxpayer-friendly? (See 'Cob(Web)' in 'TIOL') Railways' catering sees major overhaul to ensure good quality food (See 'TOG News') IMF predicts India's growth at a fast pace (See 'Corpbrief') Govt sets up mechanism to ease IGST refund claims for exporters (See 'TOG News') BRICS nations to share best practices in airport infrastructure management (See 'TOG News') Cabinet nod for MoU to promote export of pharma products to Indonesia (See 'Corpbrief') Appointment of Authorised Representative for Classes of Creditors u/s 21 (6A) (b) of IBC, 2016 (See 'Dashboard') Atal Pension Yojana - PFRDA Invites EOI for Actuarial Valuation (See 'Corpbrief') HDFC AMC sets IPO price band at Rs 1,095-1,100 Flipkart offers mobile recharge, flight ticket bookings RIL plans to borrow Rs 40,000 cr in consumer push HDFC Bank raises Rs 8,500 cr by issuing equity to parent HDFC SEBI Act - Accidental or unintentional self-trades are not covered under SEBI (PFUTP) Regulations, 2003: SEBI (See 'Legal Desk') Competition Act - In absence of any regulatory trade barriers with regard to participation by contractors in bids floated by PWD of Haryana, and since, same is not in dominant position in relevant market, abused of dominant position cannot be alleged: CCI (See 'Legal Desk') US delegation to discuss impact of sanctions imposed on Iran (See 'TOG News') Steel Ministry accepts Pension Scheme for CPSE Employees (See 'Corpbrief') Govt proposes amending Motor Vehicle Rules to permit digital driving license (See 'TOG News') PNB to receive Rs 2,000 cr capital infusion next week Nestle market cap crosses Rs 1 trillion Payments firm PhonePe buys Zopper Retail Blue Star wins Engineering Facility Management (EFM) orders from Airport & Metro segments L&T Hydrocarbon Engineering wins order for Cracker Furnace Project NBFCs focusing on SME sector for funding opportunities (See 'Corpbrief') OLA inks agreement with Haryana Govt for job creation (See 'Corpbrief') Govt announces slew of measures in Agra to protect Taj Mahal (See 'TOG News') SC defends health warnings on Tobacco products to enable 'informed choice' (See 'TOG News') India & Oman to collaborate in start-ups, SMEs & tourism (See 'TOG News') Place of removal - Valuation under CE & Customs Laws - past and present (See 'TOG INSIGHT') Competition Act - When substantial percentage of country liquor was procured by OPs from two distilleries over other distillers and manufacturers, same proves alleged preferential treatment in favour of such distilleries: CCI (See 'Legal Desk') SEBI - Since trading of share completed only after electronically given consent of client on website of POA holder and Noticee, requirement specified by regulation 42 (3) of DP Regulations stood fulfilled: SEBI (See 'Legal Desk') Consultative Paper on proposed SEBI (Fiduciaries in Securities Market) (Amendment) Regulations (See 'Dashnboard') Customs administration must reduce transaction formalities to ease trade flow: MoS (See 'TOG News') 74% IT decision makers favor using AI in financial services sector: NASSCOM report (See 'TOG News') India urges China to liberalize visa regime for Indian professionals (See 'Corpbrief') NCLAT stays lenders & shareholders meet of GJ NRE Coke (See 'Corpbrief') TCS eyes USD 200 mn in revenue from blockchain in FY19 Flipkart, Amazon cut Google ad spends Bhushan Steel appoints T V Narendran as chairman L&T & BEML ink MoU to address the indigenisation needs of Indian Defence Market BEL inks MoU with Saab, Sweden Lupin's Goa facility gets approval from UK MHRA

CCI penalizes sports broadcasters Globecast & ESCL for bid rigging

Published: Jul 11, 2018

BY TIOLCorplaws News Service

NEW DELHI, JULY 11, 2018: THE Competition Commission of India today imposed penalty on Globecast, a subsidiary of the Orange Group (earlier France Telecom Group), a global service provider of broadcasting services and ESCL, a technology service provider in India since 1998 with specialisation in media broadcasting, for indulging in bid-rigging in tenders floated by sports broadcasters for procurement of end-to-end broadcasting services, such as ground segment services as well as satellite bandwidth services, for various sporting events during the period July 2011- May 2012 including Indian Premier League 2012 (IPL-2012).

This case was taken up by the Commission suo motu u/s 19 of the Competition Act, 2002 based on the disclosure by Globecast India Private Limited and Globecast Asia Private Limited u/s 46 of the Act r/w the Competition Commission of India (Lesser Penalty) Regulations, 2009. Subsequently, the Essel Shyam Communication Limited (ESCL), now Planetcast Media Services Limited, also approached CCI as lesser penalty applicant during investigation.

From the evidence collected in the case, the Commission found that the ESCL and Globecast operated a cartel amongst them in the various sporting events held during the years 2011-12 including IPL-2012. While submitting bids for the tender floated by various broadcasters during the period July 2011- May 2012 for provision of end-to-end broadcasting services, they exchanged information and quoted bid prices as per the arrangements arrived at amongst them . As a result, they committed an infringement of the provisions of Section 3(3)(d) r/w Section 3(1) of the Act during this period.

Considering contravention of provisions of the Act by Globecast and ESCL, an amount of Rs 31.94 Crores and Rs 1.33 Crores was computed as leviable penalty on ESCL and Globecast, respectively, in terms of proviso to Section 27 (b) of the Act. While computing leviable penalty, the Commission took into consideration all relevant factors including duration of cartel & mitigating factors and decided to levy penalty at the rate of 1.5 times of their profit for the period July 2011 – May 2012. Additionally, considering totality of facts and circumstances of the case, penalty leviable on individual officials of Globecast and ESCL was computed at the rate of 10% of the average of their income for preceding three years.

Keeping in view the stage at which the lesser penalty application was filed, co-operation extended in conjunction with the value addition provided by the evidences furnished by the lesser penalty applicants in establishing the existence of cartel, the Commission granted Globecast and its individuals 100 percent reduction in the penalty and 30 percent reduction in penalty to ESCL and its individuals. Pursuant to reduction, penalty imposed on ESCL was Rs 22.36 Crores.

TIOL CORP SEARCH

TIOL GROUP WEBSITES