As Amazon Set Its Sights On MGM, Voters Want To Rein Big Tech’s Merger-Mania
By Aidan Smith
It’s been said that as “the empire Jeff Bezos founded grows, companies are forced to adapt or close.” Through exploiting workers and violating century-old antitrust law, Amazon hasn’t just built a commercial empire. Indeed, Amazon has become a modern-day monopoly, an abusive enterprise that has entrenched its dominance through swallowing up competitors. With Amazon set to acquire Hollywood staple MGM Studios, it is crucial that the Federal Trade Commission (FTC) blocks Amazon’s effort to boost a streaming monopoly. New polling by Data for Progress found that voters across party lines want the government to clamp down on Big Tech merger mania, which includes blocking Amazon’s acquisition of MGM.
Given that corporate concentration in the film industry has harmed the quality of American cinema, it’s not surprising that voters want the government to stop Amazon from making the problem worse. By a decisive 52 to 37 margin, respondents across party lines indicated support for the government blocking the Amazon-MGM deal. Independent voters notably endorsed blocking Amazon’s acquisition of MGM by 56 to 35 percent, a +21-point margin.
Nearly ten years ago, the FTC sat by as Facebook acquired Instagram, a disastrous decision with consequences that continue to come to light almost a decade later. Data for Progress polling shows that voters understand that the government’s passive approach to Big Tech merger activity has harmed workers and small businesses. By a whopping +64-point margin, voters agreed that the Big Tech companies like Amazon’s model of swallowing up competitors means that “the government needs to take a closer look at mergers by major tech companies.”
This sentiment is shared across party lines, with 83 percent of Democrats, 74 percent of Republicans, and 79 percent of independents agreeing that closer scrutiny of Big Tech merger activity is warranted. It’s clear that FTC Chair Lina Khan’s proactive approach to curbing Big Tech’s monopoly power commands popular support across the ideological spectrum. The FTC pushing to block the Amazon-MGM merger would be a solid—and substantive—step towards breaking with the agency’s lackadaisical approach to Big Tech in the past.
Polling results on the more radical proposition of forbidding Big Tech companies from buying up small firms provide further proof that voters would welcome the government blocking the Amazon-MGM merger. Sixty-six percent of voters agreed that tech giants should be forbidden from acquiring smaller businesses, as such merger activity harms both consumers and competition. This statistic includes 62 percent of Republicans, a remarkable number given GOP leadership’s efforts to protect Big Tech’s monopoly power from antitrust scrutiny.
Over two decades ago, Amazon began its long march to global dominance by conquering the book industry. The result? An environment in which publishing firms are increasingly unwilling to take chances on “riskier” books out of fear of losing out financially, giving consumers less options and harming people who’ve made their livelihoods in writing. A rise in corporate concentration in Hollywood has had similar results, with modern American cinema being defined by seemingly endless franchises and revivals of past work.
The FTC must step in swiftly and wield its statutory powers to stop Amazon from making this problem even worse. Progressive lawmakers, conservative members of Congress, and labor unions all agree: Amazon’s acquisition of MGM is a blatant move to entrench its monopoly power. And, as Data for Progress polling shows, the American electorate agrees with them.
Aidan Smith (@Aidan_Smx) is a Senior Advisor at Data for Progress