‘Do not add TV advertising slots together for cricket broadcasts’- CCI on Reliance Disney deal

New Delhi| The Competition Commission of India (CCI) issued a detailed order approving the merger of the media units of Reliance Industries and Walt Disney. The CCI order states that companies should not add TV advertising slots for cricket rights until the existing rights expire. The deal for seven TV channels, including Hungama and Super Hungama, is to be signed under CCI terms for the merger.

A detailed 48-page order on Reliance-Disney was issued by the Competition Commission of India (CCI) on Tuesday. In this, the merger of big media assets of Reliance Industries and Walt Disney was approved. This includes various conditions including disinvestment of seven TV channels.

Before obtaining regulatory approval, both sides have voluntarily agreed that they will not bundle TV advertising slots for the cricket rights of IPL, ICC and BCCI until the existing cricket broadcasting contract expires. Apart from this, both the parties will also deal for seven TV channels including Hungama and Super Hungama.

Among other conditions, the companies have voluntarily agreed that they will not combine the sale of TV advertising slots for all three cricket rights available to them – IPL, ICC and BCCI – for the remaining term of the existing rights.

According to the 48-page order, “the two sides will not tie together the sale of OTT advertising slots for all three cricket rights available to the IPL, ICC and BCCI for the remaining duration of the existing rights.”

The parties have pledged not to raise advertising rates on their TV and streaming platforms for ICC and IPL events to unreasonable levels, as long as they have the current rights. On 28 August, CCI had reported that it had approved the merger of media assets of Reliance Industries and Walt Disney Company, which would create a conglomerate worth over Rs 70,000 crore.

The deal, announced earlier this year, faced scrutiny from anti-trust regulators, and was approved after both sides proposed some amendments to the original transaction structure.