The FTC is launching an investigation into Amazon’s acquisition of MGM: Report

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The Federal Trade Commission is launching an investigation into Amazon almost $ 8.5 billion to bid acquire MGM Studios,, information they reported on Friday.

The FTC, recently led by Amazon vocal critic Lina Khan, will focus its investigation on “the greater implications of the deal on Amazon’s market power,” said two people familiar with the issue. According to these sources, the agency is concerned that this merger will “illegally enhance Amazon’s ability to offer a wide range of goods and services, and are not limited to the production and distribution of content. “

In May, Amazon announced it arrived an agreement to purchase MGM and, together with that, the rights to the film of the inherited film studio and a TV library. Almost $ 8.45 billions, that is one of Amazon’s largest acquisitions to date, the second by Whole Foods ’2017 purchase of $ 13.7 billion.

Given Amazon track track from antitrust lawsuits and objections, federal oversight seemed inevitable. The The Wall Street Journal confirmed these rumors June 22nd,, reporting to the FTC merger investigation was under construction. Not for long after that, Senator Elizabeth Warren of Massachusetts called FTC to thoroughly reconsider a potential “anticompetitor effects ”this business could have on both the entertainment industry and existing Amazon suffocation in other markets, she wrote in a letter to Khan which he reviewed the Verge.

This an investigation would be the latest pressure at the federal level smash some of the biggest American companies. Earlier on Friday, President Joe Biden signed a wide range executive order aimed at promoting competition in the U.S. economy – especially in Silicon Valley. That calls on the FCC for a reassessment network neutrality standards for broadband companies and pull anti-competition restrictions that force consumers rely on manufacturers to repair their devices. A campaign to break down high technology there is also secured bipartisan support in Congress, which was recently presented new anettitre legislation for the purpose of limit their power and increase market competition.

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