The CCI has also asked for details on which entity owns specific sports rights and for how long as well as information on previous bidders.
The Competition Commission of India (CCI) has reportedly posed approximately 100 questions to Reliance Industries and Walt Disney regarding their $8.5 billion merger of media assets in India, including inquiries about sports rights.
Antitrust experts had previously cautioned that the Reliance and Disney merger, unveiled in February, would likely undergo stringent scrutiny.
The merger will give rise to the biggest entertainment company with 120 television channels and two online streaming services, according to antitrust experts quoted by Reuters. The two media giants will have co-ownership of the rights to the cricket segment.
Reliance and Disney submitted a confidential submission to the antitrust regulator stating that the merger would not hurt the competition and put forward an argument that the cricket rights would expire in 2027 and 2028.
The CCI has now sought more details via two sets of questions, including why YouTube - which mostly has free, user-generated content - should be treated in the same market as subscription streaming services like Netflix and Disney , two sources familiar with the matter said.
Reliance and Disney have responded to the CCI questions and argued YouTube too has its own licensed, paid content as well as a wide reach, said the sources.
The CCI has also asked the companies details on which entity owns which sports rights and for how long, as well as information on who had bid for them previously.
If the merger closes, Disney-Reliance will command 40% of the advertising market share in the TV and streaming segments.
Sources: The Economic Times, Mint
