A unit Sony and Zee have offered concessions to ease the Competition Commission of India (CCI) worries over their merger, as per reports. The two have offered concessions such as discount in prices and more, to ease the anti-trust regulator’s worries.
CCI had earlier raised concerns over the merger of the two companies, which would lead to the creation of a multi-billion-dollar worth entity. On August 3, 2022, CCI had said that the merger will give the companies a humongous place in the market and an unparalleled bargaining power.
Zee and Sony had decided to merge their television channels, film assets and streaming platforms in December 2021. The partnership is likely to have a direct impact on competitors like Walt Disney.
According to Reuters, a unit of Zee and Sony have proposed concessions or ‘voluntary remedies’ like pricing discounts. The remedies also include measures like offering mandatory pricing incentives and discounts to all channel distributors, such as direct-to-home satellite operators, on fair and non-discriminatory terms for a certain period after the deal takes place.
The proposed measures also addressed concerns of Sony-Zee’s dominance over advertisers. “To assuage concerns over the entity's strong market position with advertisers, the parties proposed creating and operating ‘independent advertising verticals’ for a certain duration,” the Reuters report said citing sources.