Netflix-Warner Bros deal faces anti-trust probe in the US

Netflix’s ambitious near-$83 billion bid for Warner Bros Discovery (WBD) has triggered an antitrust review by the US Department of Justice (DoJ), underlining the regulatory headwinds facing consolidation in the global media and streaming business. The scrutiny comes even as Paramount Global continues to pursue a rival proposal for WBD, keeping the Hollywood deal theatre firmly in motion.

According to a Financial Times report, antitrust officials are sounding out industry participants on whether Netflix’s acquisition of WBD’s studio assets and HBO Max could give the streaming major disproportionate market power. The review is understood to be anchored in Section 2 of the Sherman Act, which bars illegal monopolisation, and Section 7 of the Clayton Act, which empowers regulators to challenge mergers that may substantially lessen competition. While Section 2 has historically been used sparingly, US enforcers have revived its application in recent years as part of a tougher stance on Big Tech and platform power, the FT report stated.

Reports claimed that Netflix has played down the development, stating that it is not aware of any probe “outside of the standard merger review process” and that it is “constructively engaging” with the DoJ. Warner Bros Discovery has also expressed confidence that the transaction will clear regulatory hurdles. The DoJ has declined to comment.

The Wall Street Journal, citing a civil subpoena, reported that the Justice Department is also examining whether Netflix has engaged in exclusionary or anticompetitive conduct that could entrench its market position. The line of questioning suggests regulators are not only assessing the merger’s immediate competitive impact, but also whether it could reinforce Netflix’s dominance over time in streaming, content licensing and distribution.

Even as Netflix appears to be leading the race for WBD, Paramount—backed by Oracle billionaire Larry Ellison—has kept up pressure with a hostile bid and the threat of a proxy battle to reshape WBD’s board. Netflix has accused Paramount of mischaracterising the regulatory process, arguing that its rival is focusing on “optics over outcomes”.

The proposed deal has also sparked political and industry pushback. Netflix co-CEO Ted Sarandos recently faced sceptical lawmakers during a Senate hearing, with concerns raised over concentration of power in the streaming market. The Writers Guild of America has publicly opposed the transaction, calling for it to be blocked. While President Donald Trump has previously flagged Netflix’s growing market share as a potential concern, he has since indicated that the Justice Department should independently handle the matter.