According to reports, the FTC will be reviewing Amazon’s recent acquisition of MGM, meaning Lina Khan will be in charge of the review. Khan recently became chair of the FTC. It could be an indication of how she will handle antitrust complaints against Amazon in the future.
According to The Wall Street Journal, The FTC specifically requested that they oversee the deal during negotiations in light of the ongoing antitrust probe.
Apple, Google, and Facebook are also being probed, but the FTC sought jurisdiction over Amazon-MGM. According to the WSJ, the Justice Department and FTC have divvied up antitrust investigations of the tech giants.
MGM will be investigated by the RTC (Khan)
Deals of this nature would likely be scrutinized either way. The standard practice entails reviewing large acquisitions and mergers regardless of whether antitrust issues might arise.
In a statement, Khan said in her first statement since she was sworn in as chair that she looked forward to working with her colleagues to protect the public.
There was no comment from the FTC on the report. Despite repeated attempts to reach Amazon for comment, the company did not respond.
The acquisition of MGM by Amazon was valued at nearly $9 billion in May. As part of the deal, Amazon acquired much of the James Bond intellectual property, including tens of thousands of hours of content.
The Amazon Studios senior vice president, Mike Hopkins, stated in a statement that the deal’s value lay in MGM‘s deep catalog of IP, which would be reimagined and developed together with Amazon.
The luna streaming service offered by Amazon is free of additional charges. Amazon Music, the company’s marquee streaming service, is also included as part of Amazon’s overall experience, along with free two-day shipping and free grocery delivery.
Though its original content hasn’t quite resonated in the way WandaVision or Stranger Things have, it lacks the shine of rivals like Disney+ and Netflix.
It remains unclear how much Amazon will be able to get from this acquisition, but it did obtain IP it desperately needed. Prime Video may not be an essential part of Amazon’s business model, but its existence would be impossible if subscribers did not care about it when it comes to offering specific subscription services and offers in a Prime membership.