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Astro appeals against KPPU ruling
Abdul Khalik , The Jakarta Post , Jakarta | Fri, 10/10/2008 10:50 AM | Business
Astro All Asia Multimedia Networks has challenged a ruling by the Indonesian anti-monopoly watchdog that the company violated the anti-monopoly law in broadcasting last season's English Premier League (EPL) in Indonesia.
The appeal was filed by the Malaysia-based holding and media company that provides and operates pay-television services, to the Central Jakarta District Court on Thursday.
The company asked the court to annul the Business Competition Supervisory Agency (KPPU)'s ruling, including the stipulation that required it to continue supplying content to PT Direct Vision, the local operator with which Astro cooperated to provide services to Indonesia's subscribers.
"Our client did not violate any articles of the anti-monopoly law. The ruling that requires Astro to continue working with PT Direct Vision has nothing to do with the case filed against our client," Astro's lawyer Alexander Lay said.
In September 2007, three cable providers -- PT MNC Sky Vision (Indovision), PT Indosat Mega Media (IM2) and PT Indonusa Telemedia (Telkomvision) -- reported Astro to the KPPU regarding the alleged monopoly on EPL rights, accusing the company of having received broadcast rights from ESPN Star Sport (ESS) without a tender, thereby creating unfair competition and breaking competition rules.
The KPPU subsequently investigated the case, finding on Aug. 29 ESS and Astro guilty of violating Article 16 of Law No. 5/1999 on unfair competition. The KPPU however, cleared Direct Vision and Astro of all monopoly charges.
In a surprising ruling, KPPU also added a stipulation to its ruling requiring Astro to continue supplying content to Direct Vision -- a company controlled by Lippo Group through subsidiaries PT First Media and PT Ayunda Prima Mitra.
In 2005, Lippo and Astro had signed an agreement requiring the latter to provide content to Direct Vision including an undertaking that Lippo would give Astro a 51 percent share of Direct Vision.
But up to now, the shareholding has never been transferred although Astro continued to supply content to Direct Vision, reportedly costing the Malaysian company about US$240 million and eventually forcing the Malaysian firm to file an arbitration claim in Singapore earlier this week
The KPPU ruling requiring Astro to continue working with Direct Vision would cost it more money, while giving Lippo free benefits, Alexander said.
