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Amazon-MGM merger under scrutiny as FTC reportedly launches investigation

A phone displays the MGM lion logo. Behind the phone is a larger, blurred out Amazon sign.

An FTC investigation of Amazon’s acquisition of MGM will reportedly run parallel to a different FTC investigation that appears at aggressive practices on the corporate’s e-commerce platform.


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Amazon’s effort so as to add MGM’s film and TV studio to its enterprise will bear scrutiny from federal regulators. The Federal Trade Commission launched an investigation into the merger Friday, in line with a report from The Information. The investigation would search for any unlawful aggressive benefit the merger might give to Amazon.

The investigation comes as Amazon faces rising regulatory scrutiny, together with investigations into potential anticompetitive practices in different areas of its enterprise. The FTC is endeavor a separate investigation into Amazon, which the Information reported will concentrate on whether or not the corporate illegally favors its personal merchandise over these of different companies on its e-commerce platform, as effectively as whether or not it pressures companies that record merchandise on the corporate’s market to buy Amazon’s promoting and logistics companies.

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MGM declined to remark. The FTC and Amazon did not reply to requests for remark. The merger was introduced on the finish of May, exhibiting Amazon poised to add beloved classics from MGM’s catalog to its streaming service (though not all the entire titles will likely be out there to stream completely on Prime Video.)

Also on Friday, President Joe Biden signed an government order that, partially, urged the FTC to research mergers completely — particularly acquisitions that contain “dominant internet platforms.” In response, FTC chair Lina Khan said in a statement that the company is reviewing its tips for evaluating mergers.

“The current guidelines deserve a hard look to determine whether they are overly permissive,” Khan mentioned.

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The government order additionally urged the FTC to set guidelines for competitors on e-commerce platforms the place the proprietor of the platform additionally sells its personal items. Federal lawmakers have additionally launched current laws that will goal firms that run on-line marketplaces, stopping them from favoring their merchandise over these from different companies. Amazon accounted for about 44% of US e-commerce sales in 2020.

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