Sony-Zee merger can hurt competition, scrutiny needed, says CCI: Report

A merger between the Indian unit of Japan’s Sony and Zee Entertainment to create a $10 billion TV enterprise will potentially hurt competition by having “unparalleled bargaining power”, the country’s antitrust wa­tchdog found in an initial review, according to an official notice seen by Reuters.

The Competition Commission of India’s (CCI’s) August 3 notice to the two companies stated the watchdog is of the view that a further investigation is merited. Sony and Zee in December decided to merge their television channels, film assets and streaming platforms to create a powerhouse in a key media and entertainment growth market of 1.4 billion people, challenging rivals like Walt Disney Co.