New Delhi (TIP)- Mukesh Ambani-led Reliance Industries and Walt Disney India‘s merger could attract antitrust scrutiny, experts have predicted. The Reliance-Disney merger is set to create India’s biggest TV player with over 120 channels. The valuation of the entity is pegged at $8.5 billion. Lawyers have flagged concerns that the combined entity’s strong portfolio of cricket broadcast rights could impact advertisers. It has been estimated that the Reliance-Disney merger will have a 35 percent viewership share in Indian television. In the past, both Reliance and Disney have shelled out billions of dollars to win the telecast rights of cricket tournaments.
While the overall TV space will be closely assessed by the Competition Commission of India (CCI), six antitrust lawyers said cricket rights are going to be in the spotlight as the regulators examine market share and the power of the combined entity.
K.K Sharma, a former head of mergers at CCI, said the combined Disney-Reliance combo will raise eyebrows among regulators given the market power they will exert, especially in the cricket segment, requiring “deeper scrutiny.”
Sharma, now a senior partner at Singhania and Co, told Reuters, “With Disney and Reliance together, hardly anything of cricket will be left. The regulator gets concerned even when there is a possibility of dominance. Here, it is not merely dominance but almost absolute control over cricket.”
Reliance-Disney merger may face CCI scrutiny over dominance fears
