The European Commission (EC) approved on Tuesday the acquisition of the film production company MGM Holdings Inc by Amazon, after concluding that the operation will not create competition problems in the European Economic Area (EEA).
Amazon operates businesses including retail, consumer electronics, and technology and services, as well as the co-production and retail supply of its own and third-party audiovisual services through Prime Video, while MGM Holdings Inc, which owns Metro Goldwyn Mayer Studios , is an entertainment company that produces and distributes content.
The EC investigation concluded that the transaction, as notified, will not greatly reduce competition in the markets for content production and supply, wholesale supply of television channels and retail supply of audiovisual services.
Nor will it distort, Brussels believes, the production and licensing of distribution rights to third-party distributors of films for their theatrical release and the provision of market services, according to the Community Executive in a statement.
The operation was notified to Brussels on February 8.
Under Community law, the EC has a duty to assess mergers and acquisitions involving companies with a turnover above certain thresholds and to avoid mergers that significantly impede effective competition in the EEA or part of that area.
Source: Gestion
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