Sony-Zee merger can hurt competition

Sony-Zee merger – According to an official notice seen by Reuters, the country’s antitrust watchdog found in an initial review that a merger between the Indian division of Japan’s Sony and Zee Entertainment to create a $10 billion TV company will potentially hurt competition because it will have “unparalleled bargaining power.” 
 
In a warning sent to the two companies on August 3, the Competition Commission of India (CCI) indicated that it believes that the situation merits further examination. 
 
In order to compete with rivals like Walt Disney Co. in the 1.4 billion-person main media and entertainment growth market, Sony and Zee decided in December to integrate their television channels, film assets, and streaming platforms.

Sony-Zee merger

According to three Indian lawyers familiar with the procedure, the CCI’s conclusions will delay regulatory approval of the acquisition and might require the corporations to suggest changes to its structure. They also added that if that doesn’t satisfy the CCI, it can result in a drawn-out approval and inquiry procedure. 
 
In a statement, Zee stated that it is still taking all necessary legal action to complete all requisite approval procedures for the planned merger. 
 
Requests for feedback from the CCI and Sony in India were not immediately fulfilled. Outside of usual business hours, Sony representatives in Japan did not respond.