Publish date:

Amazon Plan to Buy MGM Is Said to Be Subject of FTC Review

Amazon and MGM last month unveiled an $8.45 billion deal to combine. A media report says the plan will be reviewed by the FTC.
Author:

Amazon’s  (AMZN) - Get Report proposed $8.45 billion deal to buy TV/movie studio MGM will be reviewed by the Federal Trade Commission, a media report says.

The companies unveiled the deal last month. Amazon is seeking to strengthen the content of its Prime Video streaming service.

Big mergers have to receive government clearance, and the FTC and Justice Department split the work between them. 

The FTC advocated for review authority on this transaction because it already has begun a far-flung antitrust query into Amazon’s business practices, knowledgeable sources told The Wall Street Journal.

TheStreet Recommends

The four biggest tech companies are under investigation. The Justice Department is looking at Apple  (AAPL) - Get Report and Alphabet’s  (GOOGL) - Get Report iconic search unit, Google. And the FTC is taking on Facebook  (FB) - Get Report and Amazon.

Amazon shares recently traded at $3,518, up 1.9%. The stock has climbed 14% over the past three months.

In other tech-titan news Tuesday, the European Union said it had begun an antitrust investigation of Google to determine whether the dominant search engine has broken EU competition rules.

Specifically, the European Commission is looking at whether Google “favors its own online display advertising technology services in the ad-tech supply chain, to the detriment of competing providers of advertising technology services, advertisers and online publishers.” The EC is the EU’s executive branch.

“The formal investigation will notably examine whether Google is distorting competition by restricting access by third parties to user data for advertising purposes on websites and apps, while reserving such data for its own use.”