DOJ Probes Netflix’s Power Over Filmmakers in Warner Deal Review

The Justice Department’s review of Netflix Inc.’s planned $72 billion takeover of Warner Bros. Discovery Inc. (WBD) includes scrutiny of the streaming giant’s conduct, and whether it wields anticompetitive leverage over creators in programming negotiations, Josh Sisco reported for Bloomberg News.

Netflix argues that the government’s review is routine. (Photo: Netflix Help Center) 

The department is examining whether the deal “may substantially lessen competition or tend to create a monopoly in violation of Section 7 of the Clayton Act or Section 2 of the Sherman Act,” according to a civil investigative demand reviewed by Bloomberg News that was sent recently to an independent movie studio, according to people familiar with the matter.

The language in the demand — an administrative subpoena that had not been previously reported — is the clearest sign yet that the Trump administration is going beyond a standard deal review as it investigates the merger.

This counters Netflix’s recent argument that the government’s review is routine.

The broad scope of the inquiry suggests it may take months before officials decide whether to challenge the Netflix–Warner Bros. deal in court — a delay that could benefit rival bidder Paramount Skydance Corp., owned by Larry Ellison.