Amazon's acquisition of MGM may be under investigation
Amazon's acquisition of MGM may be under investigation

Following Amazon's recent acquisition of MGM, the deal is currently under review by the Federal Trade Commission.

This means that Lena Khan, a vocal critic of Amazon who recently became the chair of the Federal Trade Commission, is overseeing the deal.

These measures could indicate how it will handle antitrust cases against Amazon in the future.

The Wall Street Journal reported that the US Federal Trade Commission requires oversight of transactions in negotiations between authorities because it oversees ongoing antitrust investigations.

The US Department of Justice and the Federal Trade Commission do not approve of antitrust investigations from tech giants such as Apple, Google and Facebook, but the Federal Trade Commission has lobbied to monitor transactions in the US.

In both cases, the transaction can be subject to review. Large acquisitions and mergers, which may or may not lead to antitrust issues, are common practice.

Khan, who was sworn in as president last week, said in a statement that she looks forward to working with colleagues to protect the public from corporate abuse.

Amazon ambitions:

Amazon acquired MGM for nearly $9 billion in May.

The acquisition brought tens of thousands of hours of entertainment to Amazon, including many James Bond works.

At the time, Mike Hopkins, Vice President of Prime Video and Amazon Studios, said in a statement: “The value behind this deal is the intellectual property on the list that we want to reinvent and develop with the talented MGM team. Treasure House.”

Amazon does not charge any additional or separate fees for streaming services. Like 2-day delivery, free grocery delivery, and Amazon Music, the company's real-time streaming service is part of the overall experience. However, it lacks the prominence of competitors like Disney+ and Netflix.

The true value of this acquisition is still unclear. The deal enabled the e-commerce giant to secure much-needed intellectual property rights.

Amazon may not require subscribers to pay for Prime Video. But it needs their presence to continue making Prime Membership a competitive subscription product and service package.

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