Amazon acquisition of MGM, approved by EU!
Regulators conclude deal wouldn’t significantly harm competition in Europe!
- EU antitrust officials gave a green light to Amazon.com Inc.’s proposed $6.5 billion acquisition of movie studio MGM,
clearing one hurdle for the e-commerce giant ahead of a deadline for the U.S. Federal Trade Commission to deliver a verdict on the deal. WSJ reports
The European Commission, the EU’s executive and its top competition regulator, has approved the deal without conditions.
The commission said the deal wouldn’t significantly reduce competition in part because the two companies don’t significantly overlap in content production and that MGM content “cannot be considered as must-have.”
The proposed deal, which was announced last May, would give Amazon access to an extensive film, TV catlog, including James Bond movies, adding its position on Prime Video streaming service to compete with more-dominant rivals such as Netflix.
*Statista Chart on latest Amazon acquisition
The WSJ reported earlier this month that Amazon had effectively given antitrust regulators at the Federal Trade Commission, who are also reviewing the acquisition, a mid-March deadline.
Amazon is among several major, U.S.-based tech companies that are facing heightened scrutiny in the U.S. and Europe over their size and whether their behavior is harming smaller competitors. The EU is completing legislation that would designate Amazon and several other large tech companies as “gatekeepers” that must abide by a new set of rules for how they treat competitors and consumers.
Separately, both the European Commission and the FTC have opened investigations into Amazon’s business practices in recent years.
The commission has also filed charges against Amazon, accusing it of breaking antitrust rules in a case that is pending.
Amazon has denied the allegations.
Amazon notified the EU about the deal in February while,
antitrust regulators set a provisional deadline of March 15 to approve it or decide to open an in-depth investigation.
