The Competition Commission of India (CCI) has raised concerns over the proposed $8.5 billion (around ₹70,500 crore) merger between Reliance and Walt Disney. The antitrust body has cited potential harm to competition, especially in the sphere of cricket broadcast rights.
What Happened: The CCI has arrived at a preliminary conclusion that the merger could adversely affect competition due to the combined entity’s control over cricket broadcast rights, as per a Reuters report. The watchdog has reportedly asked both Disney and Reliance to justify why an investigation into the merger should not be initiated, the report added citing sources.
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The merger, announced in February, is expected to create India’s largest entertainment entity, competing with Sony, Zee Entertainment, Netflix, and Amazon. The merged company, majority-owned by Mukesh Ambani’s Reliance, would hold valuable cricket broadcast rights, leading to concerns over pricing power and influence over advertisers.
The proposed merger between Reliance’s Viacom18 and Disney is expected to capture 85% of the on-demand streaming service audience and nearly half of the TV viewership in India.
Reliance and Disney have previously indicated their willingness to sell fewer than 10 television channels to alleviate concerns about market power. However, the CCI’s recent notice suggests that these concessions may not be sufficient. The companies have been given 30 days to respond and explain their position.
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