OTT platforms are not governed by Trai but by IT rules, says TDSAT

Over The Top (OTT) platforms, such as Hotstar, are not governed by the Telecom Regulatory Authority of India (TRAI) Act but by Information Technology (IT) Rules 2021, the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) stated on Wednesday.

This order was in response to a petition by the All India Digital Cable Federation (AIDCF) against Star India Pvt Ltd (STAR).

AIDCF argued that Star’s decision to stream ICC World Cup matches for free on mobile devices through its OTT platform, Disney Hotstar, was discriminatory. They stated it violated TRAI Regulations because the same matches required a paid monthly subscription to watch on the Star Sports channel.

However, TDSAT dismissed AIDCF’s claims, stating that OTT platforms do not come under TRAI’s purview as they don’t fit the definition of ‘distribution platform’ under TRAI Regulations.

Further, the appellate tribunal clarified that OTT platforms are regulated by the IT Rules, 2021. Such platforms aren’t classified as TV channels since they don’t necessitate a licence from the Central Government.

These clarifications come amidst speculations suggesting that TRAI was considering launching a consultation paper on regulations for OTT video platforms like Netflix, Prime Video, Disney+ Hotstar, and JioCinema.

The consultation paper was anticipated to address issues such as pricing differences between OTT video platforms and traditional mediums like cable TV and DTH services. Another topic of discussion was the application of certain content regulations, traditionally meant for TV, to OTT platforms.

It’s worth noting that TDSAT had previously directed OTT platforms, including Hotstar, Sony Liv, and Sun Nxt, to share information about their content with TRAI. The matter is currently pending in the Delhi High Court.