Wednesday, April 24, 2024

Grow Your Business and Join MarketWorld Marketplace and Create Your Own Store front

HomeTechnologyAmazon Purchase of MGM Gets Green Light in EU

Amazon Purchase of MGM Gets Green Light in EU

Amazon.com has proposed a $6.5 billion acquisition of movie studio MGM.



Photo:

Kaelin Mendez/Getty Images

European Union antitrust officials gave a green light to

Amazon.com Inc.’s


AMZN 3.89%

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.

The European Commission, the EU’s executive arm and its top competition regulator, said Tuesday that it 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 and TV catalog, including James Bond movies, that could better position its Prime Video streaming service to compete with more-dominant rivals such as Netflix.

Amazon notified the EU about the deal in February, and antitrust regulators set a provisional deadline of March 15 to approve it or decide to open an in-depth investigation.

The Wall Street Journal 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. If the FTC doesn’t file a legal challenge before the deadline, Amazon could move forward with the deal.

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.

Write to Kim Mackrael at kim.mackrael@wsj.com

Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

Appeared in the March 16, 2022, print edition as ‘EU Clears Amazon Deal to Buy MGM.’


Source link

Bookmark (0)
ClosePlease login
RELATED ARTICLES
- Advertisment -spot_img

Most Popular

Sponsored Business

- Advertisment -spot_img