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India antitrust body alerts Disney, Reliance media merger will harm rivals - sources

India's antitrust body has reached an initial evaluation that the $8.5 billion India merger of Reliance and Walt Disney media assets hurts competitors due to their power over cricket broadcast rights, four sources informed Reuters on Tuesday.

In the biggest obstacle so far to their planned merger, the Competitors Commission of India (CCI) has independently informed Disney and Reliance its view and asked the companies to discuss why an investigation should not be bought, among the sources said.

Reliance, Disney and CCI did not right away respond to ask for comment. All sources declined to be called as the CCI procedure is confidential.

Cricket is the biggest pain point for the CCI, said one of the sources.

The merged business, which will be majority owned by Asia's. wealthiest man Mukesh Ambani's Dependence, will have. financially rewarding rights worth billions of dollars for the broadcast of. cricket, raising worries over pricing power and its grip over. advertisers.

Antitrust experts had actually cautioned the merger, revealed in. February, might deal with extreme examination as it will create India's. greatest entertainment player which will compete with Sony. , Zee Entertainment, Netflix and. Amazon with a combined 120 TV channels and two. streaming services.

(source: Reuters)