New Delhi: India’s antitrust authority has issued around 100 questions to Reliance Industries and Walt Disney concerning their $8.5 billion merger of media assets in India. The Competition Commission of India (CCI) is intensifying its examination of the deal, focusing on details such as sports rights, according to two sources familiar with the matter.
Announced in February, the merger aims to create India’s largest entertainment conglomerate, combining 120 TV channels and two streaming services. It will also grant control over highly valuable cricket rights, a major concern given cricket’s popularity in India.
In a confidential May submission to the CCI, the companies argued that their merger would not stifle competition. They pointed out that cricket rights will become available for bidding in 2027 and 2028, and that advertisers have access to a variety of platforms, including YouTube, to reach cricket audiences.
The CCI’s queries are divided into two sets. One key question addresses why YouTube, which primarily offers free, user-generated content, should be considered a competitor to subscription-based streaming services like Netflix and Disney+. Reliance and Disney have argued that YouTube’s extensive reach and licensed content justify its inclusion in the competitive landscape.
Also Read | Goodyear to Divest Off-the-Road Tire Business to Yokohama for $905 Million
Data from Media Partners Asia revealed that YouTube dominated 88% of India’s online video market last year, while the remaining 12% is controlled by streaming services that offer curated, premium content.
Additional concerns arise from the merger’s implications for cricket rights and other sports. The CCI has requested information on the ownership and duration of these rights, as well as details on previous bids. “The CCI is not currently raising concerns about the rights but is in the process of gathering information,” one source noted.
Also Read | Taiwan Begins Annual War Games, Aiming for Realistic Combat Simulation
The volume of questions reflects the scale of the deal, with some sources noting the unusually high number of inquiries. The merger, if approved, will significantly impact India’s $28 billion entertainment sector, where Zee Entertainment and Sony also compete. Jefferies estimates that the combined entity will control 40% of the advertising market share in TV and streaming.
Reliance, led by billionaire Mukesh Ambani, and the CCI did not respond to requests for comment. Disney declined to comment, and the CCI continues its review of the merger.
