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Union group says U.S. should reject Amazon’s plan to buy MGM -Breaking


© Reuters. FILEPHOTO: A smartphone with the Amazon logo can be seen facing MGM’s logo displayed in this illustration. It was taken on May 26, 2021. REUTERS/Dado Ruvic/Illustration

WASHINGTON (Reuters] – The U.S. Federal Trade Commission was urged Monday by four big unions: the Service Employees International Union, the Teamsters and the Teamsters to block Amazon.com’s plans to acquire Metro-Goldwyn-Mayer Studios. It claimed that it would decrease competition in the streaming media market.

Amazon had announced the deal worth $8.45 billion in May. The company said that the acquisition of the famed U.S. studio (home to James Bond), would allow it to build a library of movies and TV shows and compete with Netflix (NASDAQ:) or Disney+.

According to a report from the Strategic Organizing Center supporting the unions, the agreement would increase Amazon’s streaming library of more than 55,000 titles. There are more in development which will give Amazon more incentive to compete with rivals. The letter stated that Netflix had the second-most titles with just under 20,000.

According to the group, “The possibility that Amazon acquires a trove MGM content to add on Amazon’s vast library should alarm bells.” Amazon might be able to gain sufficient market control of MGM’s extensive library so that it can raise streaming content prices either for SVOD users or its competitors in the video-on-demand space.

Amazon said that it grew at an exponential rate during the U.S. Coronavirus lockdown and has now used its streaming services to lure new Prime members. The group stated that Prime members spend significantly more on Amazon than other shoppers.

Holly Vedova (director of FTC’s Bureau of Competition), was sent the following letter by Service Employees International Union. It also included the International Brotherhood of Teamsters and Communications Workers of America.

Amazon beat the Retail, Wholesale and Department Store Union’s attempt to create a warehouse in Bessemer, Alabama, earlier this year. The RWDSU has a plan to resume organizing, but unions continue to organize.

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Mike Robinson
Mike covers the financial, utilities and biotechnology sectors for Street Register. He has been writing about investment and personal finance topics for almost 12 years. Mike has an MBA in Finance from Wake Forest University.