LoveFilm merges with Amazon's DVD rentals

In an expected move, the UK’s Office of Fair Trading has greenlighted the merger of LoveFilm and Amazon’s UK rental operations, giving the merged entity control of about 90% of the online DVD market. It also bring in the and German DVD business. The OFT said LoveFilm had no incentive to degrade its service as there is plenty of competition in the video market, especially from emerging online sources. The site also offer a fast-growing film download service. (Release). The deal is a good one of for LoveFilm’s investor’s TAG, Arts Alliance Media, Balderton, DFJ Esprit and Index Ventures.