Reliance-Disney Merger Approved with Conditions: No Ad Slot Bundling for IPL, ICC, BCCI Properties

The Competition Commission of India (CCI) has given conditional approval to the merger between Reliance Industries’ Viacom18 and Walt Disney’s Star India, marking a significant development in the Indian media landscape. This decision, released in a 48-page order on October 22, 2024, includes key stipulations to maintain fair competition within the sector, particularly addressing concerns about market dominance and advertising practices.

One of the primary conditions imposed by the CCI is the divestiture of seven television channels, including Disney’s Hungama and Super Hungama, and Viacom18‘s Colors Marathi, Colors Marathi HD, and Colors Super. This is aimed at preventing a monopoly in the television space as the merger creates India’s largest media conglomerate, valued at over ₹70,000 crore.

The CCI also highlighted the importance of transparent advertising practices, mandating that both Reliance and Disney refrain from bundling advertisement slots for major cricketing properties such as the Indian Premier League (IPL), International Cricket Council (ICC) tournaments, and Board of Control for Cricket in India (BCCI) events. According to the CCI’s order, “The parties will not bundle together the TV ad slot sales for all three cricketing rights available with the parties, i.e., IPL, ICC, and BCCI, for the balance tenure of the existing rights.” This stipulation ensures that competition in the advertisement market remains fair and transparent.

The merger, which was initially announced in August 2023, reflects the ongoing transformation in content consumption and distribution within India. With this conditional approval, Reliance and Disney are expected to complete the merger by February 2026, provided they adhere to the CCI’s regulatory requirements.

Key Highlights:

1. Reliance Industries’ Viacom18 and Walt Disney’s Star India have received conditional approval for their merger from the CCI.
2. The merger comes with requirements such as the divestiture of seven television channels to prevent market dominance.
3. Reliance and Disney are prohibited from bundling ad slot sales for cricketing properties like IPL, ICC, and BCCI to ensure fair competition.
4. The merger is valued at over ₹70,000 crore and is expected to be completed by February 2026.