The U.S. Department of Justice is digging into Netflix. Federal investigators want to know if the streaming giant used unfair tactics to push forward its $82.7 billion plan to buy Warner Bros. Discovery. According to a report from the Wall Street Journal on Friday, the government is worried the move might help Netflix build a monopoly.
The DOJ recently sent out a legal request, known as a subpoena, to another entertainment company. In that document, officials asked for details on any “exclusionary conduct” by Netflix. Essentially, they want to know if Netflix is acting in a way that blocks other companies from competing fairly.
Netflix isn’t the only company that wants Warner Bros. Paramount is also trying to get a deal done. Both companies are hungry for Warner’s massive collection of movies and shows. This includes popular hits like Game of Thrones, the Harry Potter series, and DC Comics icons like Batman and Superman.
The DOJ’s investigation goes beyond just the price tag. They are also looking at how these massive mergers affect the people who actually make the shows. Investigators are asking how previous studio deals changed the market for actors, writers, and directors. They want to see if these giant corporations are using their power to squeeze creative talent with one-sided contracts.
Netflix claims they aren’t doing anything wrong. A company spokesperson said they are unaware of any special investigation and are simply going through the “standard merger review process.” Steven Sunshine, a lawyer for Netflix, backed this up. He said the company hasn’t seen any signs that the government is launching a separate “monopolization” probe.
Meanwhile, Paramount is rushing to finish its own review process. Even though the Warner Bros. board initially rejected Paramount’s offer, the company is still handing over information to the DOJ. They hope to get a decision within the next few weeks.
The DOJ’s investigation is still in the early stages, but it shows that the government is watching these media giants very closely.
