Madras HC approves TRAI tariff order, but holds back 15% cap on discounts

A third judge’s ruling has moved forward the TRAI tariff order case regarding regulations and pricing of TV channels, leading to the Madras High Court delivering its long-awaited verdict. 

Barring the TRAI proposal of 15 per cent cap on discounts on the channel price of a channel bouquet, the Madras High Court has okayed most of the other proposals of the TRAI order. 

In March 2018, a two-member bench of the Madras High Court had given a spit verdict in the case, with Chief Justice Indira Banerjee, heading the first bench, ruling in favour of TRAI, and Justice M Sundar ruling against it. Following this split verdict, the matter was referred to a third judge. 

As per its order, TRAI sought to regulate the pricing of channels by broadcasters such as Star India and Vijay TV, stating that pay channels and free-to-air (FTA) channels should not be mixed in a bouquet offering, which meant that when offered in a bouquet, pay channels and FTA channels need to be clubbed in separate bouquets. 

Star India and Vijay TV had moved the Court against the TRAI order stating that content pricing should be the broadcasters’ prerogative.