The two media companies first submitted their proposal to the Competition Commission of India (CCI) on October 04.
Indian media giants Sony and Zee have agreed to sell three Hindi channels, according to a new PTI report. These channels are Big Magic, Zee Action, and Zee Classic. The motive behind this merger seems to be to address potential anti-competition concerns arising out of the proposed merger deal. The two media companies have submitted their proposal to the Competition Commission of India (CCI) on October 04.
According to an Indian Express report, both groups have agreed to divest in Big Magic - a Hindi general entertainment channel, as well as Zee Action and Zee Classic - both Hindi film channels. The CCI made the 58 page order public on 26 October 2022 and mentions the prima-facie opinion that the deal is likely to cause an appreciable adverse effect on competition. It’s important to note that deals valued beyond a certain threshold need the CCI’s approval compulsorily, to ensure fair competition in the markets.
Earlier this month, on 04 October, the CCI announced that it had approved of the proposed Zee-Sony merger. In a bid to ensure fair competition in relevant markets, the regulator has put forth a mandate of various requirements that need to be fulfilled by the concerned purchaser before buying the three TV channels.