CCI Flags Competition Concerns Over $8.5B Reliance-Disney Merger

India's antitrust authority has preliminarily determined that the $8.5 billion merger between Reliance and Walt Disney’s media assets could prove to be harmful for competition, particularly due to their control over cricket broadcasting rights, as per sources.

The Competition Commission of India (CCI) has communicated its concerns to both Reliance and Disney, requesting the companies to justify why an investigation should not be initiated.

Antitrust specialists had earlier cautioned that the merger would likely face rigorous examination, as it would create India’s largest entertainment company, competing with Zee Entertainment, Sony, Amazon, Netflix, through a joint portfolio of  two streaming services and 120 TV channels.

The CCI had previously posed around 100 questions to Disney and Reliance regarding the merger. In response, the companies expressed willingness to divest fewer than 10 TV channels to mitigate concerns about market dominance and secure prompt approval, as revealed by sources to Reuters