The U.S. Department of Justice is widening its scrutiny of Netflix as part of a review into the company’s proposed $82.7 billion acquisition of Warner Bros Discovery, according to a Wall Street Journal report. Investigators are examining whether Netflix employed anti-competitive practices that could strengthen market dominance if the deal proceeds.
A civil subpoena reviewed by the Journal asked other entertainment firms to describe any conduct by Netflix that could entrench monopoly power. Regulators are also assessing how the merger might affect competition for creative talent, including the impact of past studio consolidations and differences in talent contracts across the industry.
Netflix said it is not aware of any investigation beyond the standard merger review and is cooperating with the DOJ. Company representatives said they have received no indication of a separate monopolization probe. The investigation remains at an early stage, the report said.
The DOJ is also reviewing a rival bid by Paramount, which Warner Bros’ board has already rejected. The potential transaction is drawing international attention, with competition authorities in the UK and the European Union expected to examine the deal as well. The probe highlights growing regulatory pressure on consolidation in the global entertainment industry as streaming platforms vie for scale and exclusive content.
