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

Source: Engadget

Investigation Overview

The U.S. Department of Justice has opened a probe into Netflix’s proposed acquisition of Warner Bros. Discovery. According to a civil subpoena obtained by The Wall Street Journal, the DOJ is examining whether Netflix engaged in “exclusionary conduct … that would reasonably appear capable of entrenching market or monopoly power.”

Deal background

• Netflix announced an $82.7 billion deal in December.
• The transaction is expected to close within 12–18 months, pending regulatory approval.

DOJ’s focus

• The agency has the authority to block the transaction.
• The investigation may signal the DOJ’s intent to assess any anticompetitive advantages Netflix might have created.

Netflix’s response

• Netflix attorney Steven Sunshine told the WSJ the probe is “standard practice.”
• He added that the company “has not been given any notice or seen any other sign that the DOJ is conducting a separate monopolization investigation.”
• Netflix stated it is “constructively engaging with the Department of Justice as part of the standard review of our proposed acquisition of Warner Bros.”
• The investigation is in its early stages and could take up to a year to conclude.

Original article on Engadget: