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2018 (11) TMI 1043 - Commission - Companies LawCompetition commission - Overlap in production and supply of films to third-party distributors and exhibitors for theatrical release in India - proposed combination relates to the acquisition of 21CF, including its film and television studios, cable and international TV businesses, by TWDC - whether horizontal overlaps resulting from the proposed combination are not likely to result in any appreciable adverse effect on competition in any of the business segments - Held that:- Markets is characterized either by insignificant presence of the Parties or presence of significant competitors. Therefore, the Commission is of the view that post combination, the Parties would not have the ability to foreclose the market for other competitors. In addition, the vertically related markets involving upstream segment of operation and wholesale supply of TV channels and downstream segment of retail supply of audio visual content through DTH are also identified for possibility of any vertical foreclosure. In the upstream segment relating to operation and wholesale supply of TV channels, for reasons already discussed above it is noted that there is no likelihood of AAEC in this business segment as well as in its various sub-segments. Further, for the downstream segment, the Commission notes that though 21CF holds certain equity shares of Tata Sky but the proposed combination is not likely to foreclose the market for other competitors as TRAI has issued various regulations, tariff orders and directions, etc. to generate competition and ensure fair play in the industry. Further, there are competitors of the Parties such as Tata Sky, Dish TV, Airtel DTH, Sun Direct etc. that would continue to provide competitive constraint to the Parties, post-combination. Therefore, the abovesaid vertical relationship is not likely to result in any vertical foreclosure. Considering facts on record, details provided in the notice given under sub-section (2) of Section 6 of the Act and assessment on the basis of factors stated in sub-section (4) of Section 20 of the Act, the Commission is of the opinion that the Proposed Combination is not likely to have an appreciable adverse effect on competition in India. This order shall stand revoked if, at any time, the information provided by the Acquirers is found to be incorrect.
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