InvestorQ : What is the anti-trust problem with the Jio deal with Facebook?
Arya Nanda made post

What is the anti-trust problem with the Jio deal with Facebook?

Answer
user profile image
Deepa Salunkhe answered.
4 months ago


There is no problem and it is just that the Competition Commission of India or CCI is reviewing Facebook purchase of 10% stake in Jio Platforms. CCI normally ensures that any deal does not kill competition and create monopolies in the process. In this case, the primary intent of the CCI is to prevent misuse of data in all the deals. Facebook had earlier invested $5.7 billion in Jio Platforms, which represents all the digital and telecom properties of Reliance Industries. Facebook has argued that the deal did not in any way alter the competitive landscape in India. India is one of the fastest growing online markets in the world. While Amazon and Wal-Mart are already present in a big way, the likes of Facebook and Google are vying for a bigger share. Normally, the CCI objects to exclusive arrangements in retail, which have the potential to keep out competition. The rule is that if the CCI does not decide on the deal within 210 days, it is deemed approved.