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3w ago

DOJ Widens Netflix–Warner Review to Probe Alleged Exclusionary Conduct

The Justice Department is seeking evidence about Netflix’s market power beyond a routine merger checklist.

Paramount Studios in Los Angeles. | Photographer: Ethan Swope/Bloomberg
A member of the audience dressed as Mr. Monopoly, from the board game Monopoly, listens as Netflix Co-CEO Ted Sarandos testifies before the Senate Judiciary Committee Subcommittee on Antitrust, Competition Policy, and Consumer Rights in the Dirksen Senate Office Building on February 03, 2026 in Washington, DC. The Committee is meeting to examine Netflix's $72 billion acquisition of Warner Bros. Discovery and its impact on competition in the entertainment industry.
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Overview

  • Civil subpoenas sent to entertainment firms ask for details on any exclusionary conduct by Netflix that could entrench monopoly power, as well as the effects of past studio mergers and differences in talent contracts.
  • Netflix says it is unaware of any investigation outside the standard merger review and is constructively engaging with the DOJ, according to the company and its attorney.
  • The antitrust review is in its early stages and could last up to a year, with parallel scrutiny expected in the UK and European Union.
  • Regulators are assessing both Netflix’s bid for Warner Bros. Discovery’s studios and streaming assets and Paramount Skydance’s rival proposal, which WBD’s board has rejected as inadequate.
  • Paramount is pushing to complete DOJ information requests to start a 10‑day waiting period, aiming to signal regulatory momentum to shareholders ahead of an April vote on the Netflix deal.