Sen. Warren calls for 'meticulous' review of Amazon's MGM acquisition

Senator Elizabeth Warren has asked the Federal Trade Commission to review Amazon's bid for MGM. She argues that it could cause harm to consumers and have anticompetitive consequences in the streaming space.Warren wrote to Lina Khan, newly-sworn in FTC chair, asking her to examine the potential anticompetitive effects of the deal on streaming services, entertainment products, and workers. The letter was also shared exclusively by The Verge.According to reports, the FTC is currently reviewing the deal as part a wider antitrust investigation into Amazon's business. Warren wrote to Khan citing Section 7 of Clayton Antitrust Act, which prohibits mergers that may substantially lessen competition or tend to create amonopoly. She argued that Amazon's economic impact is so vast that a deal that benefits Prime Video will only enhance its market position.Warren believes the deal could harm consumers and increase competitionAmazon is a small player in the film industry. However, it will be able to offer a variety of benefits once it enters the market.Because of its deep pockets, the company is in an unbeatable position to invest heavily in streaming to improve its position. Prime Video is one of many services offered as technical perks, rather than individual paid subscriptions. Amazon's Prime paid subscription service costs $119 annually and offers exclusive content to increase its appeal.Amazon announced that it had agreed to buy the film studio's legacy films for $8.45 million in May. Mike Hopkins, SVP of Prime Video & Amazon Studios, stated that Amazon was attracted to MGM due to the rich library of IP that the company has. We plan to reimagine the catalog and work with MGM's talented team to develop it.Warren stated in her letter that the company's strategy to operate at a loss and use low prices for customers to capture the market had worked before and that the FTC should determine if this vertical acquisition was an entertainment strategy or just another step towards unfettered Monopolization.