H T Media Limited, represented by its counsels Amarchand Mangaldas, has filed a complaint in the Competition Commission of India (CCI) against the Indian Music Giant T- Series. The complaint alleges T Series of charging exorbitant charges for Licensing away the broadcasting rights to Music and Radio channels. It is also alleged that the company is violating the Supreme Court orders against charging performance royalties for broadcast of songs in the radio channels.
T- Series reportedly holds 80% of the music from the Indian film industry and is practicing monopolistic trade and anti-competitive business model. The company allegedly is charging a royalty rate as high as INR 660 per needle hour against the Copyright Board’s ruling that put a cap on the royalty share of music companies to 2% of the net revenue.
H T Media is a company that runs two news papers (Hindustan Times and Mint) and four radio channels including the famous Fever 104 FM.
This is a first instance in India where a Copyright owner’s business model has been brought under the scanner of CCI. Indian music companies have all this while been trading under the premise that copyright owner can dictate the price on its terms. The outcome of this case will certainly have an impact on the music industry and it will be interesting to see how music companies will change their business models to circumvent the implications of an adverse decision by CCI.
The CCI has reportedly asked its Director General to investigate into the matter and submit a report.
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