The US Federal Trade Commission (FTC) on Friday launched an investigation into Amazon’s acquisition of MGM to prevent the deal from being finalized, which could take more than six months. In its investigation, the commission will seek to identify traces of anti-competitive behavior.
According to news agency sources The Information, The Federal Trade Commission has launched a detailed investigation to determine the terms of MGM’s acquisition by Amazon. Commission officials are concerned that the deal could illegally boost Amazon’s position not only in content production but also in the supply of goods and services.
Amazon announced in early June that it would add MGM to its subsidiary for $ 8.45 billion. But reports from that time suggest that the Federal Trade Commission and the US Department of Justice have decided to hold the FTC accountable. The Ministry of Justice is usually responsible for filing media contracts, but because the FTC has years of experience in investigating Amazon, the case has been assigned to them.
According to informed sources, the FTC’s current research on Amazon focuses on Amazon’s own product rating and product promotion system. The second issue is likely to be considered more seriously by Congress in a legislative package. This package is supposed to control the unlimited power of large technology companies.
The new FTC case is apparently being handled by two groups. The Technology Executive Unit will address more general issues in the fight against monopolies, and the second group, which has a history of energy and other industry cases, will review the MGM contract. Members of other groups are also invited to participate in this research on a voluntary basis.
The action of the Federal Trade Commission shows that they are ready to deal with any mergers and acquisitions of large companies. The FTC’s approach is not surprising, as Lina Khan, who is one of the most active figures in anti-monopoly cases, was appointed to head the commission by the Biden administration.