September 26, 2022

Robotic Notes

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European regulators clear Amazon’s $8.5 billion MGM deal as U.S. deadline looms

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The European Commission gave unconditional approval to Amazon’s acquisition of Hollywood studio MGM, saying Tuesday that its review determined the deal “would raise no competition concerns” in the European region.

Announced in May 2021, the $ 8.45 billion deal would be Amazon’s second-largest acquisition behind its $ 13.7 billion purchase of Whole Foods in 2017.

Regulators in the US are reportedly operating under a deadline of today, March 15, to determine whether to challenge the deal.

In a public statement announcing the approval, the EU said, in part:

Based on its market investigation, the Commission found that the transaction, as notified, would not significantly reduce competition in the markets for (i) the production and supply of AV content, (ii) the wholesale supply of TV channels, (iii) the retail supply of AV services, (iv) the production and licensing of distribution rights to third-party distributors of films for theatrical release and (v) the provision of marketplace services. These markets are found to be likely national in scope.

Amazon previously sought the recusal of FTC Chairwoman Lina Khan from the merger review, pointing specifically at her previous criticisms of the company’s reach and power.

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