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India’s Antitrust Body Heightens Scrutiny of Reliance-Disney $8.5 Billion Media Merger

By  |  July 22, 2024
India’s Antitrust Body Heightens Scrutiny of Reliance-Disney $8.5 Billion Media Merger

India’s antitrust regulator has intensified its examination of the proposed $8.5 billion merger between Reliance Industries and Walt Disney, raising around 100 questions related to the deal. The Competition Commission of India (CCI) is particularly focusing on the implications of the merger on sports broadcasting rights, according to sources who spoke to Reuters.

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    The merger, announced in February, has raised concerns among antitrust experts, who caution that the combination could create India’s largest entertainment entity. The merged entity would control 120 television channels and two streaming services, in addition to holding exclusive rights to broadcast cricket, the country’s most popular sport.

    In a confidential submission to India’s CCI in May, Reliance and Disney argued that their merger would not stifle competition. They highlighted that the cricket broadcasting rights would expire in 2027 and 2028, at which point competitors could bid for them. They also pointed out that advertisers could still target cricket audiences on various rival platforms, including YouTube.

    Read more: Disney Must Face Antitrust Lawsuit Over ESPN and Hulu Practices

    Despite these assurances, the CCI has requested further details through two sets of questions. One of the key inquiries pertains to why YouTube, which predominantly features free, user-generated content, should be considered in the same market category as subscription-based streaming services like Netflix and Disney+.

    Sources familiar with the matter have revealed that Reliance and Disney have responded to India’s questions, maintaining that YouTube’s platform includes licensed, paid content and boasts a significant user base, justifying its inclusion in the competitive landscape.

    Source: Reuters