The action comes after ATV questioned the accuracy of viewing figures at its small-screen rival.
TVB, the top local free-to-air broadcaster, said it is taking the action after ATV failed to apologize for its comments within seven days.
In its lawsuit, TVB is seeking compensation for potential loss of advertising revenue owing to the alleged libelous remarks made by ATV over the number of TVB viewers.
TVB said its ratings surveys are carried out by an independent third party over which it has no control.
One survey showed that TVB usually has 1.27 million to 1.91 million viewers for its drama series during peak hours.
However, ATV expressed doubts over the accuracy of the survey conducted by a market research firm.
Instead, it cited a survey by another third party, indicating ATV had as many as 702,680 viewers for the 32nd Hong Kong Film Awards on April 17.
ATV also quoted a survey by the University of Hong Kong Public Opinion Programme, suggesting that it is closing the gap with TVB, with a 44 percent audience share in April, compared to the 56 percent of TVB.
The ratio is February was 41 percent to 59 percent.
Meanwhile, three more players are expected to become free-to-air broadcasters.
According to reports, the Office of the Telecommunications Authority will grant licenses to PCCW (0008), i-Cable Communications (1097) and City Telecom (1137) as early as the final quarter of this year.
However, ATV said it is upset about the decision, describing it as unfair, because the investment required will be much lower than presently needed.
"ATV is required to invest at least HK$2.3 billion in the next five years, while the maximum investment for the newcomers is only HK$1.17 billion."
Source: The Standard
Translated by: AsianFanatics
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