Amazon's purchase of MGM will be investigated by Federal Trade Commission (FTC, its acronym in English), according to sources heard by The Information website. The acquisition will then undergo an “in-depth” review to see if there is abuse in the market concentration.

MGM declined to comment on the case and Amazon did not respond to the site Engadget.


In June of this year, Senator Elizabeth Warren asked the committee for a meticulous review of this purchase. The request was made in order to guarantee free competition in the market and that consumers are not harmed.

At the time, Elizabeth listed the negative consequences such a deal could have. “In addition to the broader impacts this transaction could have on workers, small businesses and competition in general, as Amazon – which already dominates several markets – accelerates its aggressive monopolistic behavior,” he said in a text.

As per the newspaper's estimate The Wall Street Journal, the purchase will move almost US$ 8,5 billion (approximately R$ 42,25 billion, in direct conversion).

Despite the significant expansion of the business, Amazon claims that what is important is the studio collection. “The real financial value behind this deal is the treasure trove of [intellectual property] in the deep catalog that we plan to reimagine and develop together with the talented team at MGM,” said Mike Hopkins, senior vice president of Prime Video and Amazon Studios.

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Such an investigation was already expected when Lina Khan, a frequent critic of Amazon, was named president of the FTC. Indeed, fear of a crackdown made the tech giant ask Lina not to participate in any judgments regarding the company. However, this is not expected to occur.

The FTC investigation does not represent a block to the MGM purchase. However, it can mean the imposition of additional conditions and a delay in the conclusion of the negotiation. Thus, the acquisition of the studios by the tech giant could take longer than anticipated.

Remember that, in the past, Google had to wait more than a year to complete the acquisition of Fitbit.

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