The Federal Trade Commission launches a probe in the Amazon almost $ 8.5 billion bid to acquire MGM Studios, the information reported Friday.
FTC, recently led by vocal Amazon critic Lina Khan, will focus its investigation on “the major implications of the agreement for Amazon’s market power,” two people familiar with the matter told the outlet. According to these sources, the Agency is concerned that this merger will “illegally increase Amazon’s ability to offer a wide range of goods and services and is not limited to content production and distribution. ”
IN Able to, Amazon announced that it had reached an agreement to buy MGM and with it the rights to the older film studio’s films and TV library. At almost $ 8.45 billion, that is one of Amazon’s largest acquisitions to date, second largest after its $ 13.7 billion acquisition of Whole Foods in 2017.
Of course given Amazonas history of antitrust lawsuits and complaints, federal control seemed inevitable. That The Wall Street Journal confirmed these rumors 22nd of June, reports that an FTC examination of the merger was in progress. Not long after Senator Elizabeth Warren of Massachusetts called on FTC to thoroughly review the potential “anti-competitive effects ”this agreement could have on both the entertainment industry and Amazon’s existing ones strangulation in other markets, she wrote in a letter to Khan reviewed by The edge.
This investigation would be the latest push at the federal level to break down some of America’s largest companies. Earlier on Friday, President Joe Biden signed a far-reaching one executive order with the aim of promoting competition in the US economy – especially in Silicon Valley. That calls on the FCC to reconsider net neutrality standards for broadband companies and recurrent anti-competitive practices restrictions that force consumers to rely on manufacturers to repair their gadgets. The campaign to break up Big Tech also have secured the support of two parties in Congress, which was recently introduced nyt antitrust legislation intended for limit their power and increase market competition.