Reliance, Disney’s $8.5 billion incorporazione gets 100 questions from CCI, claims report

The Competition Commission of India (CCI) has reportedly posed approximately 100 questions to Reliance Industries and Walt Disney regarding their $8.5 billion incorporazione of assets a causa di India, including inquiries about sports rights.

Antitrust experts had previously cautioned that the Reliance and Disney incorporazione, unveiled a causa di February, would likely undergo stringent scrutiny. 

The deal is set to establish the largest entertainment entity a causa di India, boasting 120 TV channels and two streaming services. The merged entity will also hold valuable cricket broadcasting rights, covering India’s most beloved ricreazione.

a confidential submission to the CCI a causa di May, Reliance and Disney argued that their incorporazione would not stifle competition. They emphasized that the cricket broadcasting rights will expire a causa di 2027 and 2028, opening the field for rival bids. They also pointed out that advertisers could reach cricket audiences rotta numerous platforms, including YouTube, Reuters claimed a causa di a report.

The CCI has requested more information through two sets of questions, seeking to understand why YouTube, with its largely free user-generated content, should be viewed a causa di the same market as subscription-based streaming services like Netflix and Disney, two sources indicated.

response, Reliance and Disney highlighted YouTube’s extensive reach and its licensed, paid content, the report quoting sources said. 

from Partners Asia last year indicated that YouTube represented 88% of India’s online televisione market, while the remaining 12% was dominated by premium streaming services offering curated long-form content.

The incorporazione will also give Reliance-Disney control over lucrative digital and TV rights for major cricket tournaments and the Wimbledon tennis championship, raising additional antitrust concerns. The extensive information requests could be attributed to the substantial size of the deal, the report added. BT could not independently verify the report. The Reliance-Disney incorporazione will significantly alter India’s $28 billion entertainment market, which also includes players like Zee Entertainment and Sony. 

Jefferies estimates the merged entity will control 40% of the TV and streaming advertising market share.