Context

• The Competition Commission of India (CCI) has expressed concerns about the $8.5 billion Disney and Reliance merger, saying it will harm competition.

Key Highlights

• CCI's main concern is over exclusive rights to cricket broadcasting.
• Disney-Reliance will have 40% of the advertising market share in the TV and streaming sector.
• According to CCI, this merger may increase rates for advertisers during live events.
• The Zee-Sony merger failed due to a similar warning notice by CCI in 2022 against the $10 billion merger of Zee and Sony.

Competition Commission of India: A Quasi-Judicial Body

• It is a statutory body of the Government of India. It is responsible for the enforcement of the Competition Act, 2002.
• Main objective: To promote healthy competition in the country 

Establishment and objectives of CCI

• Establishment: CCI was established on 14 October 2003 but started fully functioning from 20 May 2009.

Objectives:

• Healthy Competition: The main objective of CCI is to promote healthy competition in the market.
• Consumers' interest: CCI ensures that consumers get a wide choice and pay a fair price for quality products and services.
• Preventing unfair trade practices: CCI monitors business activities that reduce competition or harm consumers.
• Evaluation of mergers and acquisitions: When two or more companies combine, CCI examines whether this will reduce competition in the market.

Structure

• It consists of a chairman and six members appointed by the Central Government.
• Presently consists of one Chairman and two members.

Main functions and powers of CCI

• Investigation of complaints: CCI investigates if consumers or other companies complain of anti-competitive activities against a company.
• Approval of mergers and acquisitions: When two or more companies join, CCI has to take its approval.
• Investigations and raids: CCI can raid the offices of companies to investigate matters falling under its jurisdiction.
• Right to seek information: CCI can seek information, documents or records from any company. Companies have to provide this information to CCI.
• Penalties: CCI makes decisions based on its investigation and can impose fines or take other actions on guilty companies.