Alleging Dish TV's 'free set-top box' offer was an anti-competitive and deceptive act, its rival firm TataSky today filed a petition against the direct-to-home operator with fair trade regulator MRTPC.
TataSky contended before the Monopolies and Restrictive Trade Practices Commission that Dish TV was indulging in deceptive advertisements as the set-top boxes being given out by Dish TV were not for free and was in violation with the MRTP Act, 1969.
Admitting the petition of the TataSky, a 80:20 joint venture between Tata Sons and broadcast major Star India, the MR in two weeks.
During the proceeding of the commission, the counsel appearing for TataSky alleged that Zee group-promoted Dish TV claimed in its advertisement campaign in print and electronic media that its STB were being given for free, which was not the case.
"It is intended directly to deal with its main competitor (TataSky)... By this they are trgest our rival on any pricing issue. We have no objection in making free for nothing... But cannot allow them to use unfair and uncompetitive practices," submitted TataSky's counsel.
TataSky also submitted that in some schemes, the company (Dish TV) was charging rentals for STP through agreements.
In terms of market share, Dish TV is the leading player in the DTH space with over three million subscribers, while the rival TataSky had recently crossed the two-million subscribers mark.
DTH operator also submitted a STB before the Commission contending that it was not free as price was mentioned over the box.
However, this was opposed by the counsel appearing for the Dish TV. The counsel submitted that TataSky was trying to mislead the Commission.
"We never said that it is free. It is free with one scheme of Rs 3,990 only," submitted Dish TV counsel before the bench.
He added that in a similar case, filed by a consumer organisation on the same issue, the Commission had declined to pass any interim order.
"Even if we go by Tata's claim, how could a consumer go and say that I am deceived by not getting free STB. He could only say that when he does not get it with the said scheme," submitted Dish TV counsel.
Dish TV also requested the Commission to club the case filed by the consumer organisation and TataSky.
Admitting it, the MRTPC directed to list TataSky's case along with the consumer organisation's case on July 2.
In its advertisement campaign, Dish has claimed since May 10, it would provide free set-top. Under the new plan, subscribers could choose between schemes valid for 18 months, 12 months, six months or three months.
As per the scheme, if the subscribers pay an upfront subscription fee of Rs 3,990 for 12 months for 151 channels, they would get 67 movies-on-demand for free worth Rs 3,990.
While, for a 18-month package of 98 channels, the charge is Rs 3,990 upfront as subscription fee which would get 67 movies.
