EU approves Amazon's acquisition of movie studio MGM

• Amazon would be given access to an extensive film and TV catalog

• Amazon could go ahead with the deal if FTC does not legally challenge the deal

European Union gave the nod to Amazon Inc (NYSE: AMZN) for its proposed $6.5 billion acquisition of U.S. movie studio MGM.

The European Commission said on Tuesday it has approved the deal, which was announced last May, unconditionally as it would not reduce competition significantly. The commission added that the two companies do not overlap in content production.

According to the deal between the two companies, Amazon would be given access to an extensive film and TV catalog benefiting its streaming service, Prime Video.

Also Read: Amazon to secure unconditional EU approval for $8.5 billion MGM acquisition deal - Reuters

Antitrust regulators had set a deadline of March 15 to either approve or investigate the deal after Amazon informed the EU regarding the acquisition in February.

Amazon could go ahead with the deal if the Federal Trade Commission does not legally challenge the deal before the deadline.

Also Read: Amazon-MGM seen winning antitrust nod as tech critics cry foul

Many tech companies including Amazon, Apple and Google are being challenged by regulators in the U.S. and Europe over fair market practices and competition.

The EU and the Federal Trade Commission have separately opened investigations against Amazon regarding its business practices.

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