Regulators

CCI reduces penalty on broadcast companies for rigging bids

Competition Commission had found the two companies guilty of operating a cartel

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NEW DELHI: The Competition Commission of India (CCI) on Wednesday waived the penalty imposed on Globecast and reduced by 30 per cent the penalty imposed on Essel Shyam Communication Ltd (ESCl), rechristened Planetcast, for bid-rigging in tenders for procurement of end-to-end broadcasting services for various sporting events, including the IPL-2012.

The CCI earlier found the two broadcasting companies guilty of operating a cartel amongst them in various sporting events held during the years 2011-12, including Indian Premier League-2012, an IANS news report said.

It had imposed a penalty of Rs 31.94 crore and Rs 1.33 crore on ESCl and Globecast, respectively, noting that while submitting bids for the tender floated by various broadcasters during the period July 2011 to May 2012, they exchanged information and quoted bid prices as per the arrangements arrived at amongst them.

However, the commission took up the case under "lesser penalty provisions" against Globecast following which, ESCl -- now Planetcast Media Services Ltd -- also approached the CCI as lesser penalty applicant during investigation.

"Keeping in view the stage at which the lesser penalty application was filed, cooperation extended in conjunction with the value addition provided by the evidences furnished by the lesser penalty applicants in establishing the existence of cartel, CCI granted Globecast and its individuals 100 per cent reduction in the penalty and 30 per cent reduction in penalty to ESCl and its individuals," IANS quoted an official statement as saying.

"Pursuant to reduction, penalty imposed on ESCl was Rs 22.36 crore. No penalty was imposed on Globecast," it added.

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