The CCI has communicated its reservations to both companies, particularly focusing on the control they would wield over cricket broadcasting, a highly lucrative segment in the Indian market. With rights to major cricket tournaments like the Indian Premier League (IPL) at stake, the CCI fears that the merger could grant the combined entity excessive pricing power over advertisers, who are heavily reliant on cricket for reaching large audiences.
Despite these concerns, Reliance and Disney have suggested minimal concessions, such as divesting a small number of television channels. However, they have resisted any changes to their cricket broadcasting rights, arguing that these contracts are time-bound and cannot be altered without the approval of the Board of Control for Cricket in India (BCCI).
The CCI’s scrutiny echoes past actions, such as when Sony and Zee faced similar hurdles during their planned merger. Although they eventually received approval after offering significant concessions, the deal ultimately fell apart, raising questions about the future of the Disney-Reliance merger if the CCI’s concerns are not adequately addressed.
This development has cast uncertainty over the merger, which was expected to create one of India’s largest entertainment entities, capable of challenging competitors like Netflix, Amazon, and Sony-Zee. The outcome of the CCI’s investigation could significantly impact the Indian media landscape and the future of cricket broadcasting in the country.