FTC Launches Investigation Into Amazon’s MGM Acquisition: Report
The FTC, newly led by vocal Amazon critic Lina Khan, will focus its investigation on “the larger implications of the deal for Amazon’s market power,” two individuals accustomed to the matter informed the outlet. According to those sources, the company is worried that this merger will “illegally boost Amazon’s ability to offer a wide array of goods and services, and is not just limited to content production and distribution.”
In May, Amazon introduced that it had reached a deal to buy MGM and, together with it, the rights to the legacy movie studio’s film and TV library. At almost $8.45 billion, it’s one among Amazon’s largest acquisitions so far, second solely to its $13.7 billion buy of Whole Foods in 2017.
Of course, given Amazon’s track record of antitrust lawsuits and complaints, federal scrutiny appeared inevitable. The Wall Street Journal confirmed these rumors on June 22nd, reporting that an FTC investigation into the merger was within the works. Not lengthy after, Senator Elizabeth Warren of Massachusetts known as on the FTC to totally review the potential “anticompetitive effects” this deal might have on each the leisure trade and Amazon’s present stranglehold on different markets, she wrote in a letter to Khan reviewed by the Verge.
This investigation can be the newest push on the federal degree to interrupt up a few of America’s largest firms. Earlier on Friday, President Joe Biden signed a wide-ranging executive order geared toward selling competitors within the U.S. financial system—significantly in Silicon Valley. It urges the FCC to re-evaluate internet neutrality requirements for broadband firms and roll again anti-competitive restrictions that drive shoppers to rely on manufacturers to restore their devices. The marketing campaign to bust up Big Tech has additionally secured bipartisan help in Congress, which just lately launched new antitrust legislation supposed to restrict their energy and improve market competitors.
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