India sends 100 antitrust queries over $8.5 billion Reliance-Disney merger, sources say

The companies will also jointly own lucrative rights to cricket, the most popular sport in India.

In a confidential filing with the Competition Commission of India (CCI) in May, the companies said their merger would not harm competition and argued that the rights to broadcast cricket matches would expire in 2027 and 2028, allowing rivals to bid and advertisers would be able to target viewers watching cricket matches on multiple competing platforms, including YouTube, Reuters reported in May.

The CCI has now requested more detailed information through two sets of questions, including why YouTube – which largely offers free user-generated content – should be treated in the same market as subscription-based streaming services such as Netflix and Disney, two sources familiar with the matter said.

Reliance and Disney responded to CCI’s queries and said YouTube also has its own licensed, paid content and a wide reach, said the sources, who asked not to be identified because the information was confidential.

Media Partners Asia data from last year showed that YouTube accounts for 88% of the online video market in India, while the premium video market, which accounts for 12%, is dominated by streaming services that “curate premium, long-form content.”

Reliance-Disney will also own billions of dollars of digital and television cricket broadcast rights for major cricket tournaments, as well as the Wimbledon tennis tournament, which has raised growing antitrust concerns.

The CCI also asked the companies to provide information on which entity owns each of the sports broadcasting rights and for how long, as well as information on who had previously submitted bids to acquire them.

“The CCI has not raised any rights concerns so far but is collecting information,” one of the sources said.

The requests for so much information could be due to the large size of the transaction, the first source said. A second source, however, said the CCI was asking an unusually large number of questions.

Reliance, led by billionaire Mukesh Ambani, and CCI did not respond to requests for comment from Reuters. Disney declined to comment. CCI is still reviewing the merger.

If the deal is completed, Reliance-Disney would transform India’s $28 billion entertainment market, which also includes Zee Entertainment and Sony.

Jefferies estimates that Disney-Reliance will have a 40% share of the advertising market in the TV and streaming segments.

(Reporting by Aditya Kalra; additional reporting by Munsif Vengattil; editing by Miral Fahmy)

Disclaimer: This report is generated automatically by Reuters news service. ThePrint is not responsible for its content.