Amazon.com has proposed a $6.5 billion acquisition of film studio MGM.
Photograph:
Kaelin Mendez/Getty Pictures
European Union antitrust officers gave a inexperienced gentle to
Amazon.com Inc.’s
AMZN 3.02%
proposed $6.5 billion acquisition of film studio MGM, clearing one hurdle for the e-commerce large forward of a deadline for the U.S. Federal Commerce Fee to ship a verdict on the deal.
The European Fee, the EU’s government arm and its high competitors regulator, stated Tuesday that it has accredited the deal with out circumstances. The fee stated the deal wouldn’t considerably cut back competitors partially as a result of the 2 firms don’t considerably overlap in content material manufacturing and that MGM content material “can’t be thought of as must-have.”
The proposed deal, which was introduced final Might, would give Amazon entry to an intensive movie and TV catalog, together with James Bond films, that might higher place its Prime Video streaming service to compete with more-dominant rivals akin to Netflix.
Amazon notified the EU in regards to the deal in February, and antitrust regulators set a provisional deadline of March 15 to approve it or resolve to open an in-depth investigation.
The Wall Avenue Journal reported earlier this month that Amazon had successfully given antitrust regulators on the Federal Commerce Fee, who’re additionally reviewing the acquisition, a mid-March deadline. If the FTC doesn’t file a authorized problem earlier than the deadline, Amazon might transfer ahead with the deal.
Amazon is amongst a number of main, U.S.-based tech firms which can be dealing with heightened scrutiny within the U.S. and Europe over their dimension and whether or not their conduct is harming smaller rivals. The EU is finishing laws that might designate Amazon and several other different giant tech firms as “gatekeepers” that should abide by a brand new algorithm for the way they deal with rivals and shoppers.
Individually, each the European Fee and the FTC have opened investigations into Amazon’s enterprise practices lately. The fee has additionally filed fees in opposition to Amazon, accusing it of breaking antitrust guidelines in a case that’s pending. Amazon has denied the allegations.
Write to Kim Mackrael at kim.mackrael@wsj.com
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