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

Netflix's proposed acquisition of Warner Bros. Discovery, valued at $82.7 billion, is currently facing scrutiny from the US Department of Justice (DOJ). The DOJ has initiated a probe into the deal, specifically focusing on potential anticompetitive practices by Netflix. A civil subpoena indicates the Justice Department is investigating any "exclusionary conduct" by Netflix that might solidify its market or monopoly power. Netflix announced the acquisition plans in December, anticipating a closing timeline of 12 to 18 months, dependent on regulatory approvals. The DOJ possesses the authority to ultimately block the transaction, and this investigation suggests the agency might be building a case concerning unfair competitive advantages created by Netflix. Netflix’s attorney, Steven Sunshine, characterized the probe as standard procedure, denying any separate monopolization investigation notice. Netflix confirmed it is "constructively engaging with the Department of Justice" as part of the typical review process for the proposed acquisition. The investigation is reportedly in its preliminary stages and could span up to a year before reaching a conclusion. This regulatory hurdle introduces uncertainty into the completion of the massive streaming industry merger.