CCI Intensifies Scrutiny Of Reliance-disney $8.5B Media Merger
![CCI Intensifies Scrutiny Of Reliance-disney $8.5B Media Merger](https://static.businessworld.in/Untitled design (45)_20240723023546_original_image_24.webp)
India's antitrust authority has questioned Reliance Industries and Walt Disney about their $8.5 billion India media assets merger, including sports rights details, as scrutiny of the deal intensifies, according to reports.
Started in February, the $8.5 billion merger will establish India's largest entertainment entity with 120 TV channels and two streaming services, including cricket coverage. The Competition Commission of India (CCI) previously requested details on the deal's competitive impact. The companies asserted the merger wouldn't harm competition, noting that cricket rights will expire in 2027 and 2028, allowing rivals to bid. They also highlighted that advertisers can target cricket audiences on various platforms, including YouTube.
The CCI has now requested more information through two detailed sets of questions, including why YouTube, which mainly offers free user-generated content, should be considered in the same market as subscription streaming services like Netflix and Disney+. The companies have responded by noting that YouTube also provides licensed, paid content and has a wide reach. The CCI has also asked for details on which entity owns specific sports rights and for how long as well as information on previous bidders.
The extensive information requests are likely due to the significant size of the deal. The Reliance-disney merger is expected to reshape India's $28 billion entertainment market, which also includes players like Zee Entertainment and Sony. Reports indicate that Disney-reliance will command 40 per cent of the advertising market share in the TV and streaming segments if the deal is approved.