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Labor Unions Want the FTC To Block Amazon’s Acquisition of MGM

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Labor Unions Want the FTC To Block Amazon’s Acquisition of MGM

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In a 12-page letter, 4 main unions on Wednesday known as upon Holly Vedova, the appearing director of the Federal Trade Commission’s Bureau of Competition, to dam Amazon’s plans to amass Hollywood studio Metro-Goldwyn-Mayer.

The letter was penned by the Strategic Organizing Center (SOC), a democratic union federation that represents greater than 4 million staff in its 4 affiliated member unions: the Service Employees International Union (SEIU), the International Brotherhood of Teamsters, the Communications Workers of America (CWA) and the United Farmworkers of America. In it, members specific concern that the proposed deal may ultimately assist Amazon shore up its energy in a manner that might in the end deal injury to the marketplace for streaming video-on-demand.

“Amazon has a well-documented history of leveraging its dominance in e-commerce to gain market share in vertically-adjacent markets using a range of unfair and anticompetitive practices,” SOC government director Michael Zucker wrote within the letter. “Amazon’s current practices in SVOD and related markets–including leveraging e-commerce power to build SVOD market share, offering Prime Video at below market prices, and exclusionary use of its dominance in the streaming device and cloud computing markets–already raise serious questions of anti-competitive conduct in the specific market that would be affected by the merger.”

Zucker additionally outlines the SOC’s fear that vertical integration within the movie trade writ giant—a very pernicious downside in latest years—may assist giant digital platforms like Amazon “leverage gatekeeper power in one market into multiple other lines of business.”

“This merger presents an opportunity for the FTC to curb Amazon’s expansion of power in yet another line of business and place reasonable limits on how one of the country’s largest and most dominant companies is permitted to compete,” Zucker wrote.

Back in May, Amazon introduced that plans have been already underway to amass the legacy movie studio in an $8.45 billion deal that may potentially add 1000’s of flicks and tv reveals to its catalog for its roughly 200 million Prime subscribers. Just sooner or later prior, the corporate had been hit with a lawsuit introduced by D.C.’s lawyer basic for allegedly violating antitrust regulation by requiring that third-party sellers not provide higher offers for his or her merchandise elsewhere.

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https://gizmodo.com/labor-unions-want-the-ftc-to-block-amazon-s-acquisition-1847468104