Brazil Anti-trust Body Questions Insights of Disney-Fox Deal


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Brazil Anti-trust Body Questions Insights of Disney-Fox Deal

As Disney and Fox have reached a deal, questions have been asked about the aftermath, as it is expected that the deal would result in a substantial increase of sports channel on Cable and there is a high probability that the Disney would be controlling the market.

Brazil’s anti-trust regulator, Cade told on Monday, that, the deal of Walt Disney Co. to purchase the Twenty-First Century Fox Entertainment assets, had raised concerns about undermining the competition in cable television market.

A cade report mentioned, “The deal would result in a significant increase in concentration in the market of sports channels on cable TV and a high probability that Disney could control the market. It could potentially reduce the quality and diversity of the sports content available, besides raising costs that could be passed on to consumers.” In response, a Disney spokesman said, “The filing of the report on CADE’s review of the 21st Century Fox acquisition is part of the agency’s normal pre-merger process.

We have been and are continuing to work productively with the agency to address any concerns.” The questions regarding undermining the market has been raised in the light of Disney’s purchase of Fox’s film and television assets for $71.3billion and the deal has received Chinese and EU commission’s approval this month, however, which will be subject to certain conditions.