Amazon-MGM seen winning antitrust nod as tech critics cry foul
Critics of tech firms in Washington on Wednesday slammed the MGM deal as the latest example of how the industry’s biggest players snap up companies to expand their reach, even as they face a flurry of antitrust lawsuits and moves by lawmakers to rein them in.“Another day
By Divya, 9.12am ET-Amazon.com Inc. (AMZN) ’s takeover of Metro-Goldwyn-Mayer is sparking fresh criticism about the spreading tentacles of America’s technology giants, but the deal underscores how competition watchdogs have their hands tied when it comes to curbing the companies’ growth.
Critics of tech firms in Washington on Wednesday slammed the MGM deal as the latest example of how the industry’s biggest players snap up companies to expand their reach, even as they face a flurry of antitrust lawsuits and moves by lawmakers to rein them in.“Another day.
Another mega merger,” tweeted Representative David Cicilline, the Rhode Island Democrat who led a sweeping investigation of Amazon, Facebook Inc., Alphabet Inc. and Apple Inc. “Amazon’s proposed purchase of MGM reinforces what we already know -- they are laser-focused on expanding and entrenching their monopoly power.”
Amazon announced the MGM deal a day after being sued by the attorney general of Washington, D.C., who said the online retailer is engaging in anticompetitive conduct that’s leading to higher prices for consumers. The case, the first government antitrust lawsuit against Amazon in the U.S., opened a new front in the regulatory assault on the tech industry.The deal presents an early test for the Biden administration’s antitrust agenda. The president has yet to nominate an assistant attorney general to run the Justice Department’s antitrust division, which would probably review the MGM deal.For those troubled about the relentless growth of the biggest tech companies, the MGM acquisition could highlight how antitrust law falls short, said Sam Weinstein, who teaches antitrust at Cardozo School of Law in New York.
