India's Competition Commission (CCI) has raised concerns over the $8.5 billion merger between Reliance and Walt Disney’s media assets, fearing it could harm competition in the cricket broadcast market. The merger, which would create India’s largest entertainment company, is under scrutiny for potentially consolidating too much power over cricket broadcasting rights, a major revenue source given the sport's massive popularity in India.

Sources indicate that the CCI has privately communicated its reservations to both Disney and Reliance, asking them to justify why a deeper investigation should not be initiated. The main issue revolves around the merged entity’s control over lucrative cricket broadcast rights, which could give it excessive pricing power and dominance in attracting advertisers.

Reliance, majority-owned by Mukesh Ambani, and Disney had previously faced intense scrutiny over the merger’s potential to stifle competition in India’s media landscape. The combined entity would control 120 TV channels and two streaming services, positioning it as a formidable competitor to Sony, Zee Entertainment, Netflix, and Amazon.

Despite offering to divest fewer than 10 TV channels to alleviate market power concerns, Reliance and Disney have been unwilling to relinquish cricket rights, arguing that these contracts, expiring in 2027 and 2028, cannot be sold without the cricket board’s approval.

The CCI’s concerns could delay the merger approval, but both companies still have the opportunity to address these issues through further concessions. The regulator’s notice signals initial apprehension that the merger may harm competition, especially by raising advertising rates during live cricket events.

Cricket’s unparalleled popularity in India, combined with the merged entity's substantial share in the advertising market, has amplified fears that advertisers could face inflated costs. The companies have 30 days to respond to the CCI’s concerns and clarify their position.

India's Competition Commission (CCI) has raised concerns over the $8.5 billion merger between Reliance and Walt Disney’s media assets, fearing it could harm competition in the cricket broadcast market. The merger, which would create India’s largest entertainment company, is under scrutiny for potentially consolidating too much power over cricket broadcasting rights, a major revenue source given the sport's massive popularity in India.

Sources indicate that the CCI has privately communicated its reservations to both Disney and Reliance, asking them to justify why a deeper investigation should not be initiated. The main issue revolves around the merged entity’s control over lucrative cricket broadcast rights, which could give it excessive pricing power and dominance in attracting advertisers.

Reliance, majority-owned by Mukesh Ambani, and Disney had previously faced intense scrutiny over the merger’s potential to stifle competition in India’s media landscape. The combined entity would control 120 TV channels and two streaming services, positioning it as a formidable competitor to Sony, Zee Entertainment, Netflix, and Amazon.

Despite offering to divest fewer than 10 TV channels to alleviate market power concerns, Reliance and Disney have been unwilling to relinquish cricket rights, arguing that these contracts, expiring in 2027 and 2028, cannot be sold without the cricket board’s approval.

The CCI’s concerns could delay the merger approval, but both companies still have the opportunity to address these issues through further concessions. The regulator’s notice signals initial apprehension that the merger may harm competition, especially by raising advertising rates during live cricket events.

Cricket’s unparalleled popularity in India, combined with the merged entity's substantial share in the advertising market, has amplified fears that advertisers could face inflated costs. The companies have 30 days to respond to the CCI’s concerns and clarify their position.