The FTC will reportedly review Amazon's $8.45 billion purchase of MGM - and it could be bad news for the tech giant
The FTC will review Amazon's MGM deal since it was already investigating the firm over antitrust concerns, the WSJ reported.
Amazon agreed to buy the parent company of MGM Studios for $8.45 billion earlier this year.
The report comes shortly after President Biden appointed a vocal Amazon critic to chair the FTC.
The Federal Trade Commission will review Amazon's $8.45 billion purchase of MGM over antitrust concerns, sources told the Wall Street Journal.
Amazon in late May agreed to buy the parent company of MGM Studios, the decades-old Hollywood film unit, which could give the tech giant a large arsenal of classic movies and TV shows as it competes in the streaming market.
Sources told the WSJ that the FTC sought to review the deal because it was already investigating Amazon's business practices at large over potential antitrust concerns.
The FTC, which is empowered to enforce antitrust regulations, has previously reviewed Disney's 21st Century Fox deal as well as AT&T's acquisition of Time Warner in 2018, per the outlet.
Amazon declined to comment. The FTC did not immediately respond to Insider's request for comment.
The report comes shortly after Lina Khan was appointed as chair of the FTC, the youngest person ever to assume that role. Khan has a background in antitrust law, having attended Yale Law School, where she wrote a critical paper on Amazon in 2017 outlining what she saw as the company's evasion of antitrust scrutiny. Khan said Amazon was able to circumvent oversight because current antitrust laws aren't nuanced and robust enough.
Lawmakers have increasingly pressured Amazon, as well as other tech companies, over antitrust concerns recently. Congress unveiled a package of bills on June 11 designed to loosen tech companies' hold on digital markets. The legislation is specifically directed at Amazon, Google, Apple, and Facebook.
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