India Files 100 Antitrust Queries for Reliance and Disney's $8.5 Billion Merger

India's antitrust regulator has asked Reliance Industries and Walt Disney over 100 questions about their $8.5 billion India media assets merger, including specifics on sports rights, as it intensifies its probe of the deal. Antitrust experts had warned that the Reliance-Disney merger, announced in February, might attract heavy scrutiny because it will establish India's largest entertainment company with 120 TV channels and two streaming services.

The firms will also jointly own lucrative rights to cricket, India's most popular sport. In a confidential submission to the Competition Commission of India (CCI) in May, the companies claimed that their merger would not harm competition, arguing that cricket rights would expire in 2027 and 2028, allowing rivals to bid, and advertisers could target cricket-watching consumers on many rival platforms, including YouTube, Reuters reported.

"The CCI has now requested additional information through two sets of questions, including why YouTube, which mostly features free, user-generated material, should be regarded in the same market as subscription streaming services such as Netflix and Disney," according to two persons familiar with the situation.

According to individuals who declined to be named because the material is confidential, Reliance and Disney reacted to CCI queries by arguing that YouTube, too, had licensed, paid content and a broad reach. According to Media Partners Asia data from last year, YouTube accounts for 88% of the internet video market in India, while the 12% premium video market is dominated by streaming services that "curate premium long-form content".

"The CCI is not raising concerns about the rights so far, but it is gathering information," said one of the people. According to the first source, the requests for so much information may be due to the enormous magnitude of the transaction. The second source, however, stated that the CCI was asking an unusually high amount of inquiries.

Reliance, led by billionaire Mukesh Ambani, and the CCI did not answer to Reuters' requests for comment. Disney declined to respond. The CCI is still reviewing the transaction. If it goes through, the Reliance-Disney transaction will change India's $28 billion entertainment business, which also includes Zee Entertainment and Sony. According to Jefferies, Disney-Reliance will account for 40% of the TV and streaming advertising market.