Reliance Jio and Facebook Deal Pushes Towards CCI Approval

Competition Watchdog CCI will overlook the Rs 43,574 crore deal between Instant messaging platform giant Facebook and Reliance Jio

Back in April, Instant messaging platform giant Facebook acquired a 9.99 % stake in Jio platforms by investing Rs 43,574 crore. The investment by Facebook was the largest foreign direct investment (FDI) in the tech sector of India. Since the deal is one of the biggest deals in the sector, CCI was planning to inspect the entire deal to ensure that the merger is fair and monopoly is not created in the sector. Recently, Facebook and Reliance Jio have filed their application with CCI stating that the merger between Facebook and Reliance Jio is pro-competitive and it will benefit customers, Kirana stores and other small and medium scale businesses in India.

Reliance Jio and Facebook Have Extremely Dynamic Market

As reported by ET Telecom, Facebook and Reliance Jio in the CCI application stated that the competition watchdog body does not have to define any relevant markets as the two markets under consideration are consumer communication applications and advertising services. The companies also stated that there would not be any overlap between the dynamic segments which are characterised by low entry barriers, ease of entry and switching and a large number of competitors.

Facebook and Reliance Jio are Competitors

Though the deal has been finalised between Facebook and Reliance Jio, surprisingly the companies have similar businesses which compete with each other. For example, Facebook has a special market place where buyers and sellers can trade, whereas Reliance Jio has teamed up with Ajio.

Reliance JioMart is Live on WhatsApp

Soon after the deal was finalised between Facebook and Reliance Jio, Reliance JioMart was available on Facebook-owned WhatsApp in some parts of Mumbai. However, Reliance JioMart was just available in Thane, Navi Mumbai and Kalyan which is situated in Mumbai. Since WhatsApp lacks approval from the government, it is expected that Reliance JioMart services in WhatsApp will be available in the entire nation after the Facebook-owned platform, WhatsApp gets all the necessary approvals from the government. It is expected that the merger between Facebook and Reliance Jio will help nearly 60 million small businesses in India. Not only this with dynamic services and approach, but the vision of digital India will also be achieved.

Shrijan loves the process of creating content in various verticals, whether it be words, sounds or videos. He's also inclined towards digital marketing and tech industry developments. The art of creation always intrigues his interest.

guest
0 Comments
Inline Feedbacks
View all comments

Recent Posts

Android 11 for Android TV Focuses on Performance, Privacy Improvements

Google on Tuesday announced the launch of Android 11 update for Android TV focusing on enhancements to privacy and performance....

Vodafone Idea Set to Face More Pressure Over New Reliance Jio Postpaid Tariffs

Vodafone Idea, the third largest telecom operator currently “facing a cash gap” is set to witness more pressure following the...

Reliance Jio vs Bharti Airtel vs Vi (Vodafone Idea) Postpaid Plans

Reliance Jio yesterday announced its new postpaid plans which start from Rs 399. It is a good move by the...