DOJ Opens Antitrust Probe Into Netflix Over Warner Deal

The U.S. Department of Justice has launched a major antitrust investigation into Netflix, examining whether the streaming giant operates as an illegal monopoly as it pursues a $73 billion acquisition of Warner Bros. Discovery’s streaming assets.

According to sources familiar with the matter, the DOJ review goes beyond the standard merger evaluation of Netflix’s plan to acquire HBO Max, currently the nation’s third-largest streaming platform. Federal investigators are also conducting a broader inquiry into Netflix’s overall market dominance under Section 2 of the Sherman Act, which governs monopolistic business practices.

The probe comes amid growing concerns within the Trump administration over Netflix’s expanding influence. The company currently has more than 80 million subscribers in the United States and over 300 million worldwide, making it by far the largest player in the global streaming industry.

Netflix Denies Knowledge of Broader Investigation

Netflix insists it is only involved in routine merger discussions with federal regulators.

“We have not been given any notice or seen any other sign that the DOJ is conducting a monopolization investigation,” said Steve Sunshine, outside counsel for Netflix.

In a statement, the company added: “Netflix is constructively engaging with the Department of Justice as part of the standard review of our proposed acquisition of Warner Bros. We are not aware of any investigation into our business outside of the standard merger review process.”

A DOJ spokesperson declined to comment.

Concerns Over Market Power and Pricing

According to the report, the expanded review began last week, shortly after Netflix CEO Ted Sarandos testified before the Senate Judiciary Subcommittee on Antitrust. Lawmakers pressed whether the acquisition would give Netflix too much power in the market for entertainment and the ability to increase subscription prices with no effective competition.

Some Republican senators also expressed worries that Netflix’s control could allow it to shape cultural and political messages through its programming, a concern voiced by conservatives for years.

Netflix executives argued that competition remains strong, pointing to rivals such as YouTube and the fact that roughly 80 percent of Netflix subscribers already overlap with HBO Max customers.

However, DOJ officials and members of Congress from both parties remain skeptical. One source close to the administration said the department may be preparing a full-scale monopolization case against Netflix if the Warner deal moves forward.

Subpoenas and Industry Impact

The Justice Department has reportedly issued civil subpoenas seeking detailed information about how Netflix competes with other media companies. Questions include whether Netflix has engaged in practices that unfairly exclude competitors and whether past media mergers have harmed competition.

Regulators are also reviewing a competing $77.9 billion bid from Paramount Skydance to acquire Warner Bros. Discovery, which Paramount argues would pose fewer antitrust concerns due to less overlap in operations.

A Potential Hollywood Powerhouse

Netflix agreed in December to purchase Warner Bros. Discovery’s studio and streaming operations for $27.75 per share in cash, creating a potential entertainment giant that would combine franchises such as “Stranger Things” and “Harry Potter” under one corporate umbrella.

If approved, the deal would reshape the entertainment industry. But the DOJ investigation could provide regulators with grounds to block the merger if they determine Netflix already holds excessive control over the streaming market.

Antitrust reviews of this scale typically take months or even years, and the deal is also expected to face regulatory scrutiny in international markets.

For now, Netflix’s ambitious expansion plans remain uncertain as federal officials weigh whether the company has simply outgrown its competition.