India’s antitrust regulator, the Competition Commission of India (CCI), has raised concerns that the $8.5 billion merger between Reliance Industries and Walt Disney’s media assets in India could harm competition, particularly due to their combined control over cricket broadcasting rights.
Sources familiar with the matter revealed this initial assessment on Tuesday, August 20, 2024.
The CCI has privately communicated its concerns to both Disney and Reliance, indicating that the merger could give them undue dominance in the market. The commission has requested both companies to present their case and explain why a formal investigation into the deal should not be launched, according to one of the sources.
This marks the most significant regulatory challenge yet for the planned merger, which seeks to combine two major media entities in the Indian market. The merger’s potential impact on the sports broadcasting segment, particularly cricket, has raised red flags due to the popularity and economic significance of the sport in India.
Both companies have yet to respond to CCI’s concerns publicly, as discussions continue behind closed doors.
