Amazon wins EU antitrust nod for $8.5 bln MGM deal

As part of its plan to compete with Netflix and Disney+, Amazon won unconditional EU antitrust approval on Tuesday for its proposed acquisition of U.S. movie studio MGM for $8.5 billion.

A Reuters report on March 9 reported that the deal will not pose a competition concern in Europe.

The EU competition enforcer said it had looked into overlaps between the world’s largest online retailer and MGM in audio-visual content and found that the combined market shares are low and that they have strong rivals.

“The addition of MGM’s content into Amazon’s Prime Video offer would not have a significant impact on Amazon’s position as provider of marketplace services,” the Commission said.

Amazon said it was pleased with the EU clearance.

The U.S. Federal Trade Commission has a mid-March deadline to decide on the deal, a person familiar with the matter said. 

Analysts said the deal would boost Amazon’s video streaming service and attract people to subscribe to Amazon Prime, which also offers fast shipping and encourages consumers to shop more regularly.

MGM has the rights to James Bond, one of the most lucrative franchises in film history having earned nearly $7 billion at the box office globally.