DOJ is investigating whether Netflix used anticompetitive tactics as part of its merger probe


The Netflix Claims at Warner Bros. Discovery is not a done deal. As first reported by The Wall Street JournalThe US Department of Justice has begun investigating the proposed purchase of Netflix, but is particularly interested in whether the streaming giant is involved in any anticompetitive practices. According to the civil subpoena seen by WSJthe Department of Justice views any “exclusionary conduct on the part of Netflix as reasonably foreseeable as capable of strengthening market or monopoly power.”

While Netflix announces plans to get Warner Bros. Discovery in December for $82.7 billion, the deal is expected to close in 12 to 18 months, subject to required regulatory approvals. The DOJ has the power to block the transaction and this investigation could reflect the agency’s approach, which could include proving that Netflix put its competition in a unfair advantage.

Netflix’s lawyer, Steven Sunshine, spoke WSJ that this investigation is standard practice and that, “we have not been given any notice or seen any indication that the DOJ is conducting a separate monopolization investigation.” Netflix also said in a statement that it is “cooperating closely with the Department of Justice as part of its standard review of our proposed acquisition of Warner Bros.” According to WSJthe investigation is still in its early stages and could take up to a year to complete.



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