CCI approves merger of Reliance Industries and Walt Disney's media assets

The Competition Commission of India has cleared the merger of media assets of Walt Disney with that of Reliance Industries in a detailed 48-page order with several critical conditions of regulations - creating the country's largest media empire valued at over Rs 70,000 crore.

Under the agreement, the companies have, on a voluntary basis, agreed to divest seven TV channels, including Hungama and Super Hungama. On competition concerns, they agreed not to package advertisement slots for IPL, ICC, and BCCI cricketing rights. This was an appropriate restrictive condition that would remain in place until the existing rights agreements expired.

The order explicitly makes it clear that the companies would not bundle their advertisement sales concerning OTT platforms related to these cricketing rights during the tenure of the existing rights. They have further undertaken not to increase the advertisement rates to unreasonable levels both on their television and their streaming platforms for ICC and IPL events during the tenure of their current rights.

The merger had been announced earlier in the year and was under heavy scrutiny from the anti-trust regulator. Reliance and Disney had proposed modifications to the original transaction structure to meet expectations before going for approval.

Industry experts believe that a merger of this nature, on grounds of revamping competitive dynamics as well as content offerings, will significantly shift the Indian media landscape. The impact of the combined assets, which are expected to emerge as the largest media company in the country, could hence change advertising, viewership, and more broadly marketplace strategies in this fast-changing digital and television landscape.