India’s antitrust body has preliminarily assessed that the USD 8.5 billion merger of Reliance and Walt Disney media assets could hurt competition due to their influence over cricket broadcast rights, according to sources.

The Competition Commission of India (CCI) has privately informed Disney and Reliance of concerns about their merger and asked the companies to justify why an investigation shouldn’t be launched.

Reliance, Disney, and CCI have not yet commented on the matter, and all sources remain unnamed due to the confidentiality of the CCI process.

“Cricket is the main concern for the CCI,” said a source. The merger would give the new company, led by Mukesh Ambani’s Reliance, valuable cricket broadcast rights, raising fears about pricing power and control over advertisers.

The merger, which was revealed in February, can expect to receive fierce examination, according to the opinions of antitrust specialists. With a total of 120 television channels and two streaming services, it would be India’s principal entertainer, behind Sony, Zee Entertainment, Netflix, and Amazon.

The CCI previously asked Reliance and Disney about 100 questions regarding the merger. To address market power concerns and seek early approval, the companies have proposed selling fewer than 10 TV channels.

The companies can still address the CCI’s concerns by offering additional concessions. The initial notice indicates that the CCI believes the merger could harm competition and that the current concessions are insufficient.

The CCI has given the companies 30 days to respond and explain their position.

Tired of missing hot stocks? Unicorn Signals provides powerful tools like stock scans and more help you make informed trading decisions. Download now and take control of your portfolio!