In a confidential submission to the antitrust body in May, Reliance Industries and Walt Disney said that their merger would not harm competition
The CCI has now sought further details through two sets of questions, including why YouTube should be considered in the same market as subscription streaming services
In response, Reliance and Disney have argued that YouTube also offers licenced, paid content and boasts a wide reach
The Competition Commission of India (CCI) has intensified its scrutiny of the $8.5 Bn merger between Reliance Industries and Walt Disney’s India media assets, reportedly asking the companies nearly 100 questions, including specifics on sports rights.
In a confidential submission to the antitrust body in May, Reliance and Disney said that their merger would not harm competition. The companies argued that the cricket rights, which will expire in 2027 and 2028, will open up opportunities for rival bidders. They also highlighted that advertisers would still be able to target cricket audiences effectively.
The CCI has now sought further details through two sets of questions, including why YouTube, which primarily features free, user-generated content, should be considered in the same market as subscription streaming services like Netflix and Disney, news agency Reuters reported.
In response, Reliance and Disney have argued that YouTube also offers licenced, paid content and boasts a wide reach.
The CCI has also inquired about the ownership and duration of sports rights held by the companies, as well as details on previous bidders for these rights.
However, the report added that the CCI is not currently raising concerns about the rights but is gathering information.
Earlier this year, RIL and Viacom 18 and The Walt Disney Company announced the signing of binding agreements to set up a joint venture that would combine the businesses of Viacom18 and Star India Private Limited.
The merged entity will have over 100 TV channels and two leading over-the-top platforms – Disney+ Hotstar and JioCinema. It will exclusively hold the rights to distribute Disney’s content in India, in addition to Reliance and Viacom18-owned sports content. Additionally, RIL said it would invest INR 11,500 Cr in the JV to fuel its growth.
Experts told Inc42 earlier that the merged entity will have the content to cater to all segments of viewers and grab a big market share in the Indian media and entertainment space. Besides, it is also set to disrupt the country’s OTT landscape.
In its financial report for the second quarter of 2024, US based entertainment major Walt Disney said it incurred over $2 Bn charges due to goodwill impairments related to Star India and entertainment linear networks in India.
The company said that the dent could be attributed to entering a binding agreement with Reliance Industries Limited in the quarter to contribute Star India’s operations in a new joint venture.
