{"id":28146,"date":"2024-08-23T18:39:00","date_gmt":"2024-08-23T13:09:00","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=28146"},"modified":"2024-08-30T14:53:40","modified_gmt":"2024-08-30T09:23:40","slug":"cci-raises-objections-on-reliance-disney-deal","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/23-08-2024\/cci-raises-objections-on-reliance-disney-deal","title":{"rendered":"CCI Raises Objections on Reliance-Disney Deal"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/ Economy<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>In News<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Competition Commission of India (CCI) has raised concerns regarding the proposed merger of media assets between Reliance Industries and Walt Disney in India.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>About&nbsp;<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>According to the <strong><a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/04-04-2023\/competition-amendment-bill-2023\" data-type=\"link\" data-id=\"https:\/\/www.nextias.com\/ca\/current-affairs\/04-04-2023\/competition-amendment-bill-2023\">Competition (Amendment) Act 2023<\/a><\/strong>, if the CCI believes a merger may have an appreciable <strong>adverse effect on competition (AAEC)<\/strong>, it issues a statement of objections to the involved parties, requiring them to <strong>justify the merger within 25 days.<\/strong><\/li>\n\n\n\n<li>Earlier this year, Reliance, Viacom 18 Media Private Ltd, and The Walt Disney Company announced the signing of binding definitive agreements to form a <strong>joint venture (JV)<\/strong> that would combine the <strong>businesses of Viacom18 and Star India.<\/strong><\/li>\n\n\n\n<li>The merged entity would have near-monopoly control over digital and TV cricket rights, including the highly valuable Indian Premier League (IPL).<\/li>\n\n\n\n<li>The Competition Commission of India (CCI) previously imposed a fine of \u20b91,337.76 crore on Google for engaging in <strong>anti-competitive practices concerning Android mobile devices.<\/strong><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Adverse effect on competition (AAEC) &amp; its Impacts<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>It is a situation where a business practice, merger, or agreement has the potential to significantly harm competition within a market.<\/li>\n\n\n\n<li><strong>Impacts of AAEC&nbsp;<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>Reduction in Consumer Choices: <\/strong>When competition is diminished, consumers often have fewer choices in terms of products or services. This can lead to a lack of diversity in the market.<\/li>\n\n\n\n<li><strong>Higher Prices:<\/strong> With reduced competition, companies may have the power to set higher prices, as consumers have fewer alternatives.<\/li>\n\n\n\n<li><strong>Barrier to Entry for New Players:<\/strong> AAEC can create significant barriers to entry for new companies, making it difficult for startups or smaller firms to enter the market.<\/li>\n\n\n\n<li><strong>Exploitation of Market Power:<\/strong> Such as unfair terms of trade, tying arrangements, or restrictive covenants.<\/li>\n\n\n\n<li><strong>Decreased Innovation: <\/strong>AAEC can lead to a reduction in innovation because the incentive to innovate diminishes when competition is weak.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>About Competition Commission of India (CCI)&nbsp;<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>It is an autonomous statutory body established in 2009 under the<strong> Competition Act, 2002.<\/strong><\/li>\n\n\n\n<li>The CCI eliminates practices that adversely affect competition, promote and sustain competition in markets, protect the interests of consumers, and ensure freedom of trade in the markets of India.<\/li>\n<\/ul>\n\n\n\n<p>Source: TH<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Competition Commission of India (CCI) has raised concerns regarding the proposed merger of media assets between Reliance Industries and Walt Disney in India.<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-28146","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/28146","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=28146"}],"version-history":[{"count":2,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/28146\/revisions"}],"predecessor-version":[{"id":28534,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/28146\/revisions\/28534"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=28146"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=28146"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=28146"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}