CCI raises concern over cricket broadcast rights

NEW DELHI: The Competition Commission of India (CCI) is said to have raised preliminary concerns that the $8.5 billion merger of Reliance and Walt Disney media assets might harm competition due to their power over cricket broadcast rights.

As per a report, the CCI has privately told billionaire Mukesh Ambani’s Reliance and Disney its view and asked the companies to explain why an investigation shouldn’t be ordered.

The report stated that rights worth billions of dollars for the broadcast of cricket would be vested with the merged entity, which could potentially peril fair pricing power and control over advertisers.

The CCI earlier privately asked Reliance and Disney about 100 questions related to the merger. The companies reportedly told the antitrust body they are willing to sell about 10 television channels to assuage concerns about market power to get an early approval.

CCI is reported to have given a 30-day timeframe to the two companies to respond and explain their position.