India’s Antitrust Body Flags Concerns Over $8.5 Billion Reliance-Disney Merger
India’s antitrust regulator, the Competition Commission of India (CCI), has raised concerns over the proposed $8.5 billion merger between Reliance and Walt Disney’s media assets, citing potential harm to competition, particularly regarding cricket broadcast rights. According to sources, the CCI has informed both companies of its preliminary assessment, suggesting that their combined control over these lucrative rights could lead to pricing power and significant influence over advertisers.
In a significant setback for the merger, the CCI has asked Reliance and Disney to justify why a detailed investigation should not be initiated, with the companies being given 30 days to respond. Antitrust experts had previously warned that the merger could face intense scrutiny, as it would create India’s largest entertainment entity, competing with giants like Sony, Zee, Netflix, and Amazon.
To alleviate concerns, Reliance and Disney have reportedly offered to divest fewer than 10 television channels. However, the CCI remains unconvinced, and further concessions may be required to secure approval. The situation is poised to become more complicated if the companies fail to adequately address the regulator’s concerns.
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