A full-scale antitrust review of plans to create a $10 billion media powerhouse in India by Japan’s Sony and Zee Entertainment could force concessions and prolong the process by months at a critical moment for the Indian company.
An initial Competition Commission of India (CCI) review has flagged concerns, Reuters reported, arguing the group would have “unparalleled bargaining power” with 92 channels coupled with Sony’s $86 billion in global revenues.
The CCI has called for further investigation, highlighting the impact on competition due to the “strong” market position the merged entity would have over advertising and channel pricing, particularly in the popular Hindi language segment.
Shares in Zee fell 6% during trade on Thursday, a day after Reuters reported on CCI’s assessment of the merger.
Zee did not respond to questions for this article, but has said it was continuing to…
