CCP takes action against cable TV monopoly

Tri-Star Cable Network issued show cause for denying entry to new players.


Our Correspondent February 29, 2012

ISLAMABAD:


The Competition Commission of Pakistan (CCP) has issued show cause notices to National Police Foundation (NPF) and Tri-Star Cable TV Network on Wednesday for entering into an exclusive agreement and prohibiting consumers from getting service from other operators.


The CCP received a formal complaint from Nayatel and informal complaints from residents of National Police Foundation (NPF), that a ten-year agreement took place between NPF and Tri-Star Cable TV Network (TCTN) on November 27, 2008 granted exclusive right to TCTN in respect of multi-channel Cable TV and Data Transmission services in Sector E-11 (3 and 4) owned by the NPF.

An inquiry conducted by the commission found the exclusivity clause in the agreement to reduce competition within the relevant market which is a prima facie violation of Section 4 of the Competition Act.

In terms of the inquiry report this agreement had and continues to have the effect of restricting competition in the concerned area by denying entry to new players in the area. This restricted customers the right to choose and discouraged innovation by restricting the market to one operator, said the CCP.

In the show cause notices, the respondents have been given 14 days to file their written reply and to avail the opportunity of being heard on March 15, 2012 before the Commission.

Published in The Express Tribune, March 1st, 2012.

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