The Competition Commission of India (CCI) has raised issues over the suggested $8.5 billion merger between Disney’s media assets in India and Reliance Industries, attributing potential risks to the market competition. The proposed merger would allow the combined entity significant control over cricket broadcasting rights, a significant element of India’s media industry.
The CCI’s initial evaluation suggests that the merger may stifle competition, especially in the lucrative cricket broadcasting industry, changing the whole sector. If agreed to, the merger will give the new organisation control of up to 40% of India’s advertising market in television and streaming segments, as estimated by Jefferies. The dominance could increase advertising rates, putting pressure on competitors and reducing options for advertisers.
To address the concerns raised, CCI has given Disney and Reliance 30 days to respond. A full-scale investigation looms if the companies fail to mitigate the competitive risks. Reliance and Disney have offered to let go of some television channels but remain reluctant to give up control over cricket rights, which will expire in 2027 and 2028.
The consequence of this scrutiny might set a remarkable precedent for media mergers in India in the future, especially in the fast-evolving digital and sports broadcasting industries.
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