Investigation by director general not mandatory

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Ruling in Anuj Kumar Bhati v Sony Entertainment TV (SET) & Ors, Delhi High Court recently held that neither the Monopolies and Restrictive Trade Practices Act, 1969, nor the Competition Act, 2002, requires that an investigation by the director general be ordered when a complaint is received, unless a case is made for it.

The court was hearing a challenge to orders passed by the Competition Commission of India (CCI) and the Competition Appellate Tribunal. The petition in Anuj Kumar Bhati centred on allegations that organizers of a popular television quiz show, Kaun Banega Crorepati, abused their dominant position and adopted unfair trade practices.

The competition authorities had dismissed the complaint against Sony Entertainment TV, holding that viewership figures did not show that the quiz show had a dominant position and so the company could not be accused of abuse of dominance.

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The update of court judgments is compiled by Bhasin & Co, Advocates, a corporate law firm based in New Delhi. The authors can be contacted at lbhasin@bhasinco.in or lbhasin@gmail.com. Readers should not act on the basis of this information without seeking professional legal advice.

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