Reliance, Disney’s $8.5 billion merger will get 100 questions from CCI, claims report

The Competitors Fee of India (CCI) has reportedly posed roughly 100 inquiries to Reliance Industries and Walt Disney relating to their $8.5 billion merger of media belongings in India, together with inquiries about sports activities rights.

Antitrust consultants had beforehand cautioned that the Reliance and Disney merger, unveiled in February, would seemingly endure stringent scrutiny. 

The deal is ready to determine the most important leisure entity in India, boasting 120 TV channels and two streaming providers. The merged entity may also maintain priceless cricket broadcasting rights, overlaying India’s most beloved sport.

In a confidential submission to the CCI in Could, Reliance and Disney argued that their merger wouldn’t stifle competitors. They emphasised that the cricket broadcasting rights will expire in 2027 and 2028, opening the sector for rival bids. Additionally they identified that advertisers might attain cricket audiences through quite a few platforms, together with YouTube, Reuters claimed in a report.

The CCI has requested extra info by two units of questions, searching for to know why YouTube, with its largely free user-generated content material, must be seen in the identical market as subscription-based streaming providers like Netflix and Disney, two sources indicated.

In response, Reliance and Disney highlighted YouTube’s intensive attain and its licensed, paid content material, the report quoting sources stated. 

Information from Media Companions Asia final yr indicated that YouTube represented 88% of India’s on-line video market, whereas the remaining 12% was dominated by premium streaming providers providing curated long-form content material.

The merger may also give Reliance-Disney management over profitable digital and TV rights for main cricket tournaments and the Wimbledon tennis championship, elevating extra antitrust issues. The intensive info requests could possibly be attributed to the substantial dimension of the deal, the report added. BT couldn’t independently confirm the report. The Reliance-Disney merger will considerably alter India’s $28 billion leisure market, which additionally consists of gamers like Zee Leisure and Sony. 

Jefferies estimates the merged entity will management 40% of the TV and streaming promoting market share.