The fair trade regulator has asked Zee and Sony to ensure no misuse of market dominance that will arise as a result of the proposed merger.
India's competition regulator approved a merger between the Indian media conglomerate Zee and the Indian unit of Japan's Sony that will create a $10-billion TV behemoth, but with certain conditions.
The companies will merge their television channels, film assets and streaming platforms to create a powerhouse in a key growth market of 1.4 billion people, to take on the likes of Netflix and Disney in India.
The Competition Commission of India did not elaborate on the conditions. Sony said it would wait for remaining regulatory approvals to launch the merged company.
"We will now await remaining regulatory approvals to finally launch the new merged company. The merged company will create extraordinary value for Indian consumers and eventually lead the consumer transition from traditional pay TV into the digital future,"
Sony said in a statement.
Zee and Sony had offered concessions such as pricing discounts to help ease concerns of the regulator over their merger, sources told Reuters last month.
Earlier, the media also reported that the Competition Commission of India flagged the potential adverse effects arising out from the Zee-Sony merger. As the Commission had found in its initial review, the enterprise would potentially hurt competition by having "unparalleled bargaining power."
Experts point out that the merger will create the largest entertainment network in India with a 26 percent viewership share and that the consolidation is a big positive as the merged entity will become a serious contender to replace market leader Disney Star.
Sources: Moneycontrol, Reuters
