CCI blocks Reliance-Disney merger, may have to pay heavy price for advertising during cricket telecast

New Delhi : Competition Commission of India i.e. CCI has recently taken a big decision regarding the merger between Reliance Industries and Walt Disney. While approving the merger of these two companies, the Competition Regulator has said to sell 7 TV channels. Besides, CCI has also decided that the sales of advertisement slots should not be included in the broadcasting rights of cricket events.

Competition Commission of India (CCI) has suggested taking these measures for the merger of media assets of both the groups. With this merger, the country's largest media company worth Rs 70,000 crore will come into existence. CCI printed its detailed order on Tuesday, nearly two months after approving the deal. It lists various remedial measures to address potential anti-competitive conditions following the merger.

Higher fees on advertising

The new company formed after the merger will have the broadcasting rights of Indian Premier League (TV and Digital), ICC Cricket Tournament (TV and Digital), Wimbledon, Pro Kabaddi League and BCCI domestic cricket matches. The advertising business had raised concerns over the merger of Reliance Media assets and Walt Disney-controlled Star India, saying it could lead to higher advertising charges during telecasts of major cricket events.

Also read:- Real estate business is increasing in the country, number of contracts also increased

Will not increase advertisement fees

According to the CCI order, both parties have decided that 'they will not unreasonably increase the advertisement fees on their TV and OTT platforms for the ICC tournaments and IPL matches of which they have broadcasting rights.'

show cause notice

CCI had sent show cause notices to both Reliance Industries and Walt Disney over anti-competitive fears. In response, both parties have voluntarily committed that they will not combine OTT advertising slot sales for all 3 cricket rights available to them. Meanwhile, both OTT platforms Disney Plus Hotstar and JioCinema will continue to operate separately.

7 channels will be sold

According to the CCI order, 7 channels including Star Jalsa Movies, Star Jalsa Movies HD, Colors Marathi and Colors Marathi HD will be sold. Of these, 5 channels are operated by Viacom 18 which is a part of Reliance Industries. Star India's channels Hungama and Super Hungama will also be sold. Along with this, CCI has also imposed a condition that these channels should not be purchased by Zee Entertainment, Culver Max Entertainment (Sony Pictures) or South-based Sun TV Network.

approval for merger

CCI will appoint an independent agency to monitor the sales of the disinvested TV channels. CCI had said on August 28 that it has approved the merger of the media assets of Reliance Industries and The Walt Disney Company. This merger deal was announced in early 2024. However, the deal faced scrutiny from the Competition Commission. This approval has been given after proposing certain amendments to the original transaction structure of the deal.

(with agency input)