Sources: the FTC will review Amazon's proposed acquisition of MGM, just as the commission gets a new chairwoman who has been critical of Amazon's expansion
Wall Street JournalBrent Kendall
Context & Ripple Effects
The MGM review arrives as the FTC gains a chairwoman described as critical of Amazon’s expansion, putting a content acquisition inside a broader enforcement posture. Related coverage shows that scrutiny later intensified into an in-depth FTC investigation, while Senator Warren called for a broad review of the transaction.
The case ultimately became a test of the agency’s willingness to convert scrutiny into action: Amazon later set a challenge deadline, and the FTC did not challenge the MGM acquisition.
First-order effects
Amazon’s proposed MGM purchase moves into FTC review, subjecting the deal to agency scrutiny rather than a routine closing path.
The FTC’s new leadership immediately faces a high-profile decision over Amazon’s acquisition-led expansion.
Second-order effects
Amazon must manage the timing and evidentiary demands of the review, while MGM remains in a transaction awaiting regulatory resolution.
The review gives Amazon’s critics an institutional forum for claims that the acquisition expands the company’s market power, as reflected in Warren’s subsequent request for a detailed examination.
Third-order effects
The eventual decision not to challenge MGM, followed by a revamped Amazon antitrust probe that asked about the deal, suggests merger clearance need not end regulatory scrutiny of the buyer’s broader conduct.
The episode is part of a shift toward treating acquisitions by large platforms as enforcement tests of expansion strategy, not solely as stand-alone media transactions.
The trend: Large-platform acquisitions are increasingly assessed as part of the acquirer’s wider expansion and antitrust record.
I'm glad the FTC will be investigating this deal. Amazon is no typical studio buyer, and the FTC should look into how this behemoth's purchase may affect not just streaming and entertainment, but also workers, small businesses, and competition overall. https://www.wsj.com/...
“The FTC and the Justice Department previously agreed to divide up investigations of four leading tech giants' conduct, with the department taking Alphabet Inc.'s Google and Apple Inc., while the FTC took Facebook Inc. and Amazon.” https://www.wsj.com/...
WSJ EXCLUSIVE: Amazon's planned acquisition of MGM will undergo an antitrust review. It comes as Lina Khan, a critic of the online giant, takes the helm at the FTC. https://www.wsj.com/...
The FTC reviewing Amazon's acquisition of MGM Studios is a positive development, and it could give us an idea of how much teeth it will have under Lina Khan's leadership. These media merger reviews by the FTC & DoJ are usually pretty ineffective. https://www.wsj.com/...
WSJ: The FTC, with its new chair, will review Amazon's acquisition of MGM, rather than the Justice Department. “The FTC pushed for jurisdiction...because it already has an open, wide-ranging antitrust investigation into Amazon's business” https://www.wsj.com/...
Amazon's planned MGM deal will be reviewed by the Federal Trade Commission, people familiar with the matter say. The agency's new head has been critical of the tech giant. https://www.wsj.com/...
This is great news! When Amazon bought Whole Foods in 2017, the FTC barely lifted a finger. Really encouraging sign that things are finally changing at the FTC under Khan's leadership. https://www.wsj.com/...