Reliance Industries and Walt Disney are considering proposing a two-year freeze on advertising rate cards to the Competition Commission of India (CCI).
As per media reports, this move is part of their strategy to secure the CCI’s approval for the merger of Star India and Viacom18.
Reliance Industries and Disney, aiming to finalise their merger by October, have been actively exploring strategies to address regulatory concerns regarding the potential effects of the merger on the Indian media and entertainment (M&E) sector, reports stated.
In addition to the proposed rate freeze, Reliance Industries and Disney have put forward several other recommendations. These include the closure of certain channels in both Hindi and regional markets. This move is anticipated as the merged entity’s market share in numerous regions is projected to surpass the 40% mark.
Also read: CCI Raises Concerns Over Cricket Rights In Reliance-Disney Merger
Earlier, India’s antitrust authority preliminarily determined that the $8.5 billion merger of Reliance and Walt Disney‘s media assets could stifle competition. This assessment is based on concerns over their significant influence over cricket broadcast rights.
As per media reports, in a significant blow to their proposed merger, the Competition Commission of India (CCI) has privately communicated its concerns to Disney and Reliance. The CCI has requested that the companies provide explanations as to why an investigation should not be initiated.
Meanwhile, the Congress party on Wednesday raised concerns with the CCI regarding its approval of all acquisitions by the Adani Group. The party questioned why the regulatory body “remained passive” while the conglomerate expanded its influence, creating “monopolies” in essential infrastructure sectors and driving up costs for consumers.
Taking to Twitter, Jairam Ramesh, Congress General Secretary In-Charge Communications, said, “The Competition Commission of India (CCI) has reportedly raised concerns that the proposed Reliance-Disney merger could stifle competition. It is a good time to reflect on how the CCI should have also had the courage to address how the non-biological PM’s other favourite business conglomerate is acquiring companies and reducing competition across various industries.”
“The CCI is legally required to approve mergers and acquisitions that exceed a certain threshold. Yet, all acquisitions by the Adani Group have been approved, even as the company builds monopolies in sectors like ports, airports, power, and cement—industries at high risk of market failure and anti-competitive practices—often through threats and intimidation that have the backing of the powers-that-be,” he added.
The Competition Commission of India (CCI) has reportedly raised concerns that the proposed Reliance-Disney merger could stifle competition. It is a good time to reflect on how the CCI should have also had the courage to address how the non-biological PM’s other favourite business…
— Jairam Ramesh (@Jairam_Ramesh) August 21, 2024
