New Delhi: The proposed $8.5 billion merger between Reliance Industries and Walt Disney’s Indian arm has hit a roadblock, with the Competition Commission of India (CCI) raising serious concerns about the deal’s impact on market competition. The merger, which aims to combine Disney+ Hotstar and JioCinema, could potentially lead to market dominance that stifles competition, particularly in the realm of cricket broadcasting.
According to a Reuters report on Tuesday, the CCI’s initial assessment suggests that the merger could eliminate competition in the lucrative market for cricket broadcast rights, which has been identified as a primary issue. The CCI has communicated these concerns to both Reliance and Disney, though none of the involved parties have made any official statements on the matter.
The deal, announced in February 2024, would transfer ownership of the merged entity to Reliance, controlled by billionaire Mukesh Ambani. With this move, Reliance could gain significant control over broadcasting and advertising rates, potentially leaving no viable competitors in the market for cricket rights.
Experts have previously voiced apprehensions over the implications of this merger, cautioning that it could lead to monopolistic control in the entertainment and sports broadcasting sectors. The creation of this combined entity would make it the largest entertainment company in India, leaving players like Sony, Netflix, and Amazon Prime as the only significant competitors.
Recent reports have also suggested that Reliance plans to merge Disney+ Hotstar with JioCinema to streamline its streaming operations, avoiding the need to manage two separate platforms. However, if the CCI decides to block the merger, these plans could face major setbacks.
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