Despite early rumblings from politicians, many legal experts expected Amazon’s $8.45-billion purchase of MGM to be a straightforward merger without major regulatory hurdles, reports The L-A Times.
However, On Tuesday, Sen. Elizabeth Warren (D-Mass.) urged the Federal Trade Commission to do a “broad and meticulous review” of the proposed merger, raising concerns about Amazon’s reach in the marketplace and its competitive advantage.
Separately, in a petition filed Wednesday, Amazon questioned the motives of FTC Chair Lina Khan and asked that she be recused from the agency’s antitrust investigation of the company.
Among the concerns cited by Amazon was a paper Khan wrote as a student for the Yale Law Journal discussing Amazon’s dominance called “Amazon’s Antitrust Paradox.”
“Given 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’s antitrust defenses with an open mind,” Amazon said in its petition.
The scrutiny raises questions over whether other large tech companies that are growing their presence in entertainment could face similar challenges.
Amazon faces significant competition in the streaming video space from 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 “James Bond” and “Rocky.”
Some legal experts have said they did not expect the acquisition would be blocked.
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