India's Antitrust Body Flags Competition Concerns in Disney-Reliance Mega Merger

The Competition Commission of India (CCI) has raised concerns over the $8.5 billion merger between Reliance and Walt Disney's media assets, citing potential harm to competition due to their combined hold over cricket broadcast rights. CCI has asked both companies to address these concerns within 30 days or face an investigation.

The Competition Commission of India (CCI) has raised significant concerns regarding the $8.5 billion merger between Reliance and Walt Disney's media assets, indicating that it could potentially harm competition. The primary issue lies in their combined control over cricket broadcast rights, according to information obtained by Reuters from four informed sources.

The CCI has sent a notice to both companies, asking them to justify why an investigation should not be initiated. If the merger proceeds without concessions, the new entity would have unprecedented control over cricket broadcasting, which is immensely popular in India. This dominance could negatively impact market pricing and advertisers, raising fears among competition watchdogs.

Although Reliance and Disney have signified their willingness to sell a few TV channels to mitigate concerns, they remain firm on retaining cricket broadcast rights, which are extremely lucrative and valued at billions of dollars. This standoff might lead to prolonged scrutiny and delays in the merger approval process.

(With inputs from agencies.)