Reliance-Disney Merger of $8.5 Billion Faces 100 Antitrust Queries, Report Says

The proposed Reliance-Disney deal has the potential to significantly alter India’s $28 billion entertainment market. As part of the agreement, the companies would gain control over valuable cricket rights, a sport that holds immense popularity in India.

In response to concerns raised by the Competition Commission of India (CCI), the companies stated that their merger would not negatively impact competition. They highlighted that the cricket rights are set to expire in 2027 and 2028, allowing for bidding by competitors, and emphasized that advertisers can reach cricket-viewing audiences through various platforms, including YouTube.

Furthermore, it was noted that Reliance and Disney have defended their position by pointing out that YouTube offers its own licensed, paid content and has a broad reach. The combined entity would also hold digital and TV cricket rights for major tournaments and the Wimbledon tennis championship, prompting additional scrutiny related to antitrust considerations.

The CCI has requested detailed information about the ownership and duration of sports rights, as well as previous bidding activities. There are varying perspectives on the CCI’s approach, with one source suggesting that the extensive information requests may be due to the substantial nature of the deal.

Nevertheless, another source characterized the CCI’s inquiries as unusually numerous. Despite Reuters’ attempts to obtain comments from Reliance, Disney, and the CCI, responses were not provided.

The CCI is currently in the process of reviewing the proposed merger, which, if finalized, would have significant implications for the Indian entertainment industry. It’s important to note that the headline is the only part of this story that has been edited by NDTV staff, and the text has been published from a syndicated feed.