Reliance-Disney merger: CCI raises concern over cricket broadcast rights

The Competition Commission of India (CCI) has red-flagged the proposed $8.5 billion merger of Reliance and Walt Disney media assets in India, saying in its initial assessment that it has the potential to harm competition due to their grip over cricket broadcast rights.

The antitrust body has raised concerns over the combined entity’s control over broadcast right of cricket matches, that the entities have won through bidding as separate entities prior to the merger.

Through the merged entity Disney-Reliance aims to create India’s biggest entertainment company with a total of 120 TV channels and two streaming services to rival the likes of Sony, Zee Entertainment, Netflix and Amazon.

The CCI has already sent a notice to warn Disney and Reliance to express its concerns, asking the companied to explain their stances within 30 days. If their answer are unsatisfactory, the CCI could launch an investigation

“Cricket is the biggest pain point for the CCI,” Reuters quoted a source as saying.

The merger was announced in February with the majority of the new entity owned by Mukesh Ambani’s Reliance, which already has bagged digital rights of broadcasting Indian cricket team’s matches in a multi-million dollar deal. Disney has won the corresponding broadcast TV rights in another mega buck deal.

Reliance and Disney has had to reply to around 00 questions of the CCI, replying that they are ready 10 sell off less than 10 TV channels to comply with regulations and get initial approval.

But they have informed the CCI of their uncompromising stance on cricket, saying that attempt to sell off the broadcast and streaming rights, due to expire in 2027 and 2028, would need the BCCI’s approval, delaying the process of merger.

The CCI, Reliance and Disney are yet to comment publicly on the matter while the BCCI, manned be Home Minister Amit Shah’s son Jay Shah, has also remained tightlipped so far. News9Live