BENGALURU: Reliance Industries’ owned Jio Platform and social media giant Facebook have filed their application with competition watchdog CCI citing that the $5.7 billion deal is “pro-competitive, benefits consumers, Kirana stores and other small and micro local Indian businesses, and take forward the vision of digital India.”
The application comes after Facebook announced that it is picking up a 9.99% stake in Jio Platforms, which owns India’s largest telco besides a slew of digital services, in April.
As a part of the deal, Facebook-owned messaging application WhatsApp and Reliance Industries’ retail unit have also entered an agreement for commerce services. While WhatsApp has over 400 million active users in India, Jio has 370 million telecom subscribers.
The companies said in the filing that CCI “need not define any relevant markets in this case” and two markets under consideration are consumer communication applications and advertising services. “There is no significant horizontal overlap in either of these extremely dynamic segments, characterized by low entry barriers, ease of entry and switching, and a large number of competitors,” according to the application.