The Competition Commission of India (CCI) has approved Facebook’s $5.7 Bn investment in Jio Platforms. In its submission to CCI, Facebook and the Reliance Industries unit had told the CCI that the proposed transaction does not alter the competitive landscape and that Facebook and Jio Platforms would continue to operate independently. After Facebook’s investment, Jio Platforms went on to raise a total INR 1.15 Lakh Cr from a clutch of private equity firms and sovereign wealth funds.
However, CCI approval seems to be only half the battle won as Facebook is reportedly seeking legal advice on India’s foreign direct investment (FDI) policy towards neighbouring countries, particularly China and Hong Kong, to ensure there are no issues in closing the deal.
The new FDI rules have created a hurdle for Zomato as well. The company is yet to receive $100 Mn of the $150 Mn it raised in January from China-based Alibaba’s affiliate company ANT Financial. The companies are currently “evaluating” if this capital would require the government’s approval or not, since it was inked before the regulations were announced.