The Federal Trade Commission is planning to review Amazon’s acquisition of MGM at a time when Big Tech is facing increased scrutiny.
Amazon announced in May it was purchasing MGM for $8.45 billion. MGM had reportedly been looking for a buyer for some time, and Amazon was a natural fit as it looks to expand its Prime Video content catalog.
According to The Wall Street Journal, the FTC is planning on reviewing the decision, amid antitrust concerns and a wider scrutiny of the increasing power and influence the tech industry wields. The decision also comes immediately after the appointment of Lina Khan as FTC Chairwoman. Khan made a name as an antitrust critic, in large part for her criticism of Amazon.
MGM is no longer one of the larger Hollywood studios, so that is certainly in the Amazon’s favor. Nonetheless, given the power Amazon already wields — not to mention the success of its Prime Video platform — buying MGM may be a bridge too far for regulators.