Star-Viacom18 merger: CCI flags concerns over monopoly of cricket broadcast rights

New Delhi: India’s antitrust watchdog has preliminarily flagged the $8.5 billion Reliance-Disney merger as a potential competition buster, with concerns over their combined grip on cricket broadcast rights, according to news reports.

As per the Reuters report, the Competition Commission of India (CCI) has discreetly alerted Disney and Reliance via a notice, expressing concerns about their dominant hold on the broadcasting rights for cricket.

The CCI has given the companies 30 days to justify why an investigation shouldn't be launched.

Another concern is how advertisers might encounter pricing challenges if the merger proceeds, stated the report.

On February 28, 2024, The Walt Disney Company sold its India business to Mukesh Ambani’s Reliance Industries at a $3.5 billion valuation, which it bought from Rupert Murdoch for $14 billion seven years ago.

The CCI had previously sent Reliance and Disney about 100 questions regarding the merger. In response, the companies expressed willingness to sell television channels to ease concerns about market dominance and secure early approval. 

However, they refused to compromise on cricket rights, explaining that these rights, set to expire in 2027 and 2028, cannot be sold at this time. They also noted that any transfer of these rights would require approval from the cricket board, potentially delaying the process.