The deal could hurt competition especially regarding the potential dominance of the merged entity in the cricket broadcasting market.
- As per the Competition (Amendment) Act 2023, when the CCI is of the opinion that a merger is likely to have an adverse effect on competition, it can issues a statement of objections.
Other recent CCI steps to increase competition
- Google: CCI imposed a monetary penalty of Rs. 1337.76 crore on Google for anti-competitive practices in relation to Android mobile devices.
- Amazon and Flipkart: CCI probe found that the E-commerce majors Amazon, Flipkart flouted antitrust laws by preferring sellers affiliated with or controlled by Flipkart or Amazon.
Why is lack of competition bad for consumers?
- Inefficiencies: The monopoly company may not focus on improving the quality of the products and also create barriers for competitors to enter the marketplace.
- Innovation: Monopolies lead to a lack of innovation as there is no need to improve products to entice consumers.
- Higher prices: When a company has no competitors, it has a greater ability to set the higher prices.
About Competition Commission of India
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