Walt Disney Co (NYSE:DIS, ETR:WDP) and Reliance’s tie-up could mean competition woes in India due to their power over cricket broadcasting rights, the country's antitrust body has warned.
According to Reuters-cited sources, The Competition Commission of India previously flagged issues over the US$8.5 billion (£6.5 billion) tie-up relating to their grip on cricket broadcasting rights.
The duo were given 30 days to quell the regulator’s concerns, with the merged company set to own rights to major cricket tournaments such as the Indian Premier League.
Concerns stem from the merged company’s ability to hike rates for advertisers during live broadcasting of such tournaments, one source said, with the IPL representing the most valuable cricket tournament in the world.
Though Disney and India-based Reliance offered to sell some channels, they are said to have refused to budge on cricket, arguing ditching rights before they expire in 2027 and 2028 respectively was not possible.
India’s concerns mark the biggest knock-back in Disney and Reliance’s merger plan so far, with the watchdog's notice threatening to delay approval if concessions aren’t agreed on.