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Los Angeles (tca\/dpa) – Amazon\u2019s 8.45 billion dollar purchase of MGM looked to be a straightforward merger without any regulatory hurdles.<\/p>\nLos Angeles (tca\/dpa) – Amazon\u2019s 8.45 billion dollar purchase of MGM looked to be a straightforward merger without any regulatory hurdles.<\/p>\n
But now the acquisition is getting high-level scrutiny.<\/p>\n
On Tuesday, Sen. Elizabeth Warren, D-Mass., urged the Federal Trade Commission to do a \u201cbroad and meticulous review\u201d of the proposed merger, raising concerns about Amazon\u2019s reach in the marketplace and its competitive advantage.<\/p>\n
Separately, Amazon questioned the motives of FTC Chair Lina Khan and asked that she be recused from the agency\u2019s antitrust investigation of the company in a motion filed with the FTC.<\/p>\n
Among the concerns cited by Amazon was a paper Khan wrote as a student for the Yale Law Journal discussing Amazon\u2019s dominance called \u201cAmazon\u2019s Antitrust Paradox.\u201d<\/p>\n
\u201cGiven her long track record of detailed pronouncements about Amazon, and her repeated proclamations that Amazon has violated the antitrust laws, a reasonable observer would conclude that she no longer can consider the company\u2019s antitrust defenses with an open mind,\u201d Amazon said in its motion.<\/p>\n
The FTC declined to comment. Amazon did not immediately return a request for comment.<\/p>\n
The scrutiny raises questions over whether other large tech companies that are growing their presence in entertainment could face similar challenges.<\/p>\n
Amazon faces significant competition in the streaming video space against rivals like Netflix, Apple TV+ and Disney+. By buying MGM, Amazon would snap up a library of more than 4,000 movies and franchises like \u201cJames Bond\u201d and \u201cRocky.\u201d<\/p>\n
Legal experts have said they did not anticipate the acquisition would be blocked.<\/p>\n
\u201cThis is not a transaction that Amazon would gain so much market share it would be anti-competitive, thus facing any significant antitrust scrutiny,\u201d said Corey Martin, a managing partner at Granderson Des Rochers law firm last month.<\/p>\n
But Warren said in a June 24 letter to FTC Chair Khan that the Amazon-MGM deal should have \u201cmeticulous antitrust scrutiny\u201d by the FTC because Amazon\u2019s streaming service is also tied to its Prime membership. The subscription gives consumers access to other perks like free shipping, as well as music streams and videos.<\/p>\n
\u201cI urge you to use the FTC\u2019s broad authority under this law to assess the possible anticompetitive effects this deal will have on streaming services and entertainment products in addition to the broader impacts that this transaction may have on workers, small businesses, and competition overall as Amazon \u2014 which is already the dominant e-commerce firm \u2014 accelerates its aggressive monopolistic behavior,\u201d Warren wrote in her letter.<\/p>\n
The Writers Guild of America West also has praised legislative efforts to rein in the power of Big Tech.<\/p>\n
\u201cMore recently, Amazon\u2019s intention to add MGM studios to an empire that already dominates markets spanning the entire content value chain \u2014 from production via Amazon Studios, to distribution via Prime, to access to consumers via its Channels store and Fire devices \u2014 illustrates the imminent need for greater scrutiny and reform,\u201d the WGA West said in a statement last week regarding antitrust bills that it believes can help address this issue.<\/p>\n
Amazon has been criticized for its labor practices and its impact on small businesses. Earlier this year, Amazon said it would pay more than 61.7 million dollars in withheld tips to Flex drivers in a settlement with the FTC, following an L.A. Times investigation exposing the practice.<\/p>\n
Khan became FTC chair earlier this month and was previously a Columbia Law School professor. She also had worked as counsel to the U.S. House Judiciary Committee\u2019s Subcommittee on Antitrust, Commercial and Administrative Law and as legal director at the Open Markets Institute.<\/p>\n
\u201cI look forward to working with my colleagues to protect the public from corporate abuse,\u201d Khan said in a statement at the time.<\/p>\n
By Wendy Lee, Ryan Faughnder, Los Angeles Times<\/span><\/i><\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" Los Angeles (tca\/dpa) – Amazon\u2019s 8.45 billion dollar purchase of MGM looked to be a straightforward merger without any regulatory hurdles. But now the acquisition is getting high-level scrutiny. On Tuesday, Sen. Elizabeth Warren, D-Mass., urged the Federal Trade Commission to do a \u201cbroad and meticulous review\u201d of the proposed merger, raising concerns about Amazon\u2019s<\/p>\n","protected":false},"author":1,"featured_media":107557,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[343],"tags":[],"class_list":{"0":"post-156503","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-actualidad"},"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t