Netflix's bid for Warner Bros. Discovery remains under scrutiny from the US Department of Justice, which has launched an investigation into whether the streaming giant employed anticompetitive tactics during the proposed merger.
The DOJ has issued a civil subpoena to Netflix, seeking information on any "exclusionary conduct" that could potentially entrench market or monopoly power. This probe is notable, as it raises questions about whether Netflix's massive acquisition of Warner Bros. Discovery would unfairly stifle competition in the streaming industry.
The investigation comes at a time when Netflix has announced plans to acquire Warner Bros. Discovery for $82.7 billion. While regulators are typically expected to review such deals within 12-18 months, this probe suggests that the DOJ may be taking a closer look at the potential impact on competition.
A lawyer representing Netflix downplayed the significance of the investigation, stating that it is standard practice and that his client has not received any notice of a separate monopolization investigation. However, this claim remains to be seen as the investigation is still in its early stages and could take up to a year to complete.
As the deal hangs in the balance, one thing is clear: the DOJ's investigation will have significant implications for Netflix and the streaming industry as a whole.
The DOJ has issued a civil subpoena to Netflix, seeking information on any "exclusionary conduct" that could potentially entrench market or monopoly power. This probe is notable, as it raises questions about whether Netflix's massive acquisition of Warner Bros. Discovery would unfairly stifle competition in the streaming industry.
The investigation comes at a time when Netflix has announced plans to acquire Warner Bros. Discovery for $82.7 billion. While regulators are typically expected to review such deals within 12-18 months, this probe suggests that the DOJ may be taking a closer look at the potential impact on competition.
A lawyer representing Netflix downplayed the significance of the investigation, stating that it is standard practice and that his client has not received any notice of a separate monopolization investigation. However, this claim remains to be seen as the investigation is still in its early stages and could take up to a year to complete.
As the deal hangs in the balance, one thing is clear: the DOJ's investigation will have significant implications for Netflix and the streaming industry as a whole.