Unions Urge FTC To Block Amazon’s MGM Takeover
Four of the biggest trade unions in the United States have urged the Federal Trade Commission to block Amazon’s plan to buy MGM Studios for A$11.69 billion, saying the move breaches anti-competition laws.
The deal, announced in May, would severely reduce competition in the streaming sector, according to the unions, who have teamed up under the ‘Strategic Organising Centre’ umbrella.
The SOC argued that the addition of the MGM catalogue would give Amazon Prime more than 55,000 titles, as oppose to current market leader Netflix’s 20,000.
“The prospect of Amazon acquiring a trove of additional MGM content to build on Amazon’s existing vast library should raise alarm bells,” the group said.
“With control over MGM’s vast library, Amazon may acquire enough market power over streaming content to raise prices for (streaming video-on-demand) SVOD competitors or for SVOD consumers.”