European Union antitrust officials have given the green light to Amazon’s proposed $6.5bn acquisition of movie studio MGM.
This marks a significant step for the ecommerce giant, ahead of a looming deadline for the U.S. Federal Trade Commission to deliver a verdict on the deal.
The U.S. Federal Trade Commission has a mid-March deadline to decide on the deal, a person familiar with the matter told Reuters.
The deadline for the EU’s approval was March 15, and the deal has been approved without conditions, according to the European Commission.
The commission said the deal would not reduce competition, a key concern, because the two companies don’t necessarily overlap in content production and MGM content “cannot be considered as must-have.”
“The addition of MGM’s content into Amazon’s Prime Video offer would not have a significant impact on Amazon’s position as provider of marketplace services,” the commission said.
MGM has a library of 4,000 films and 17,000 TV episodes, including franchises such as James Bond, Rocky, Legally Blonde, and RoboCop.
If approved in the US, the deal would bolster Amazon’s content side and help the company keep up with the likes of Netflix and Disney.
Amazon told Reuters it was pleased with the EU clearance.