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US Senator Elizabeth Warren calls for review of Amazon-MGM deal: Report

Elizabeth Warren was of the view that the Amazon-MGM deal could hurt consumers and have anti-competitive effects in the streaming space and beyond.

June 30, 2021 / 03:10 PM IST
Warren asked the FTC to examine the possible anticompetitive effects the deal will have on streaming services.

Warren asked the FTC to examine the possible anticompetitive effects the deal will have on streaming services.

United States Senator Elizabeth Warren has asked the Federal Trade Commission (FTC) for a thorough review of Amazon's acquisition of MGM, The Verge has reported.

Warren was of the view that the deal could hurt consumers and have anti-competitive effects in the streaming space and beyond.

A letter was addressed to FTC chair Lina Khan, the tech critic who recently took over the position.

On May 26, Amazon said it would purchase MGM for $8.45 billion, making the deal Amazon's second-largest acquisition after buying grocer Whole Foods for nearly $14 billion in 2017.

Also read: Amazon to buy MGM, studio behind James Bond and ‘Shark Tank’, for $8.45 billion

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MGM is the studio behind "Legally Blonde", "Shark Tank", and the James Bond movies.

Warren asked the FTC to examine "the possible anticompetitive effects this deal will have on streaming services and entertainment products in addition to the broader impacts that this transaction may have on workers, small businesses, and competition overall as Amazon—which already dominates numerous markets—accelerates its aggressive monopolistic behaviour."

The FTC is reviewing the deal as part of a larger antitrust investigation, the report said.

Warren cited Section 7 of the Clayton Antitrust Act as prohibiting mergers for which the outcome "may be substantially to lessen competition, or to tend to create a monopoly."

Amazon's Prime Video streaming platform has more than 200 million subscribers across the globe.



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first published: Jun 30, 2021 03:10 pm
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