A civil subpoena shows the US DOJ is investigating Netflix for potential anticompetitive tactics as DOJ probes the company's proposed acquisition of WBD
As it probes bids for Warner, the department is asking if the streamer has engaged in conduct that could make it a monopoly
The subpoena adds a conduct inquiry to merger review. That follows public concern that Netflix's scale could itself complicate the transaction, including warnings that its market share could be an issue.
First-order effects
Netflix faces a DOJ inquiry into its business practices alongside review of the proposed WBD acquisition, increasing its immediate legal and information-production burden.
The proposed transaction is assessed not only for the combination of Netflix and WBD assets, but also against allegations that Netflix may already be using market power anticompetitively.
Second-order effects
A broader review can lengthen deal planning and make Netflix and WBD prepare for a wider range of outcomes, including a challenge or remedies, even though the subpoena does not establish wrongdoing.
Rival streamers, studios, and creators gain a clearer channel to raise concerns about Netflix's negotiating leverage with enforcers; subsequent reporting indicates the review has focused on Netflix's leverage over creators.
Third-order effects
If merger review increasingly incorporates alleged conduct by the buyer, large media deals will face scrutiny of platform behavior as well as conventional asset concentration.
The case fits a durable shift toward DOJ antitrust enforcement that reaches beyond a single sector, building on its earlier review of major tech platforms; whether that produces a formal challenge here remains unresolved.
The trend: Media consolidation is being tested under a broader antitrust lens that treats a buyer's existing platform conduct as relevant to merger approval.
The irony of articles about market share and industry power all ignore that Paramount+Warner Bros Discovery would be far larger than Netflix in TV market share and even surpass YouTube and Disney to make Paramount the #1 player in all of TV (remember Netflix is only buying HBO, w…
Will be fascinating to see how the DoJ could possibly conclude that Netflix has 50% or more market share of subscription streaming, let the actual competitive category of streaming TV and linear TV. Remember, Netflix+HBO is still smaller market share than Disney and YouTube. ..
SCOOP: The DOJ is investigating whether Netflix has engaged in anticompetitive tactics as it probes its proposed Warner deal w/@davidmichaels https://www.wsj.com/... via @WSJ
It could just be routine investigatory work, but I spelled out the monopolization scenario a month ago [image: “What if the government frames the deal as exclusionary conduct designed to maintain monopoly power, and brings a Section 2 Sherman Act case that puts Netflix's entire b…
My expectation on this is that it won't matter if Netflix wants to close. The DOJ has neither a good case nor the talent and bandwidth to make that case. They also need a friendly judge to entertain this bullshit and that's not looking like a strong bet for them.
I'm sure the U.S. press will do a GREAT job explaining to readers how this is about ensuring that Larry Ellison can acquire CNN and HBO and has nothing to do with any genuine interest in competition or antitrust