The European Commission has approved Amazon’s acquisition of the US film company MGM Holdings. In May last year, the signing of the e-commerce giant’s agreement was announced to buy the historic film production company per 8.45 billion dollars. Following this announcement, the Commission carried out a market investigation and found that the operation does not raise competition problems in the European Economic Area (SEE).
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The details of the agreement
Mgm Holdings is the parent company of the historic US film studio Metro-Goldwyn-Mayer Studios Inc, which has made legendary films such as the James Bond saga. Amazon, on the other hand, has been integrating its business for several years now retail, consumer electronics and technology services, with production and the retail supply of own and third-party audiovisual content via Prime Video. According to the agreement reached by the two parties, therefore, MGM will give Amazon one Extremely rich library of films and TV shows: over 4 thousand titles, including The Pink Panther, Singing in the Rain and Rocky. Certainly a considerable advantage over the big rivals in the streaming field, such as Netflix and Disney +.
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Amazon’s expansion beyond e-commerce
The Commission found that MGM films represent a limited share of box office receipts in the See and therefore would not significantly reduce competition – the note states – on the markets for the production and supply of audiovisual content; wholesale supply of television channels; the retail supply of audiovisual services; the production and licensing of distribution rights to third-party distributors of films for theatrical release; the provision of market services. These markets are believed to be national in scope. Furthermore, the EU Commission does not believe that the addition of the new contents of MGM to the Prime Video offer would not have a significant impact on Amazon’s position as a market service provider, but the operation has some relevance in the history of the giant. e-commerce. After the acquisition of Whole Foods supermarkets for over $ 13.7 billionfurther evidence of how much the company intends to expand to other sectors of the economy.
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