Lawmakers Raise ‘Antitrust Concerns’ Over Potential Netflix, WBD Merger

Photo from Dmitry Kropachev via Unsplash

By India McCarty

Lawmakers sound the alarm on a potential deal between Netflix and Warner Bros. Discovery, warning that a partnership between the two “raises antitrust concerns.”

“It’s no surprise that the significant value of our portfolio is receiving increased recognition by others in the market,” WBD President and CEO David Zaslav said in an October statement about a potential acquisition. “After receiving interest from multiple parties, we have initiated a comprehensive review of strategic alternatives to identify the best path forward to unlock the full value of our assets.”

Paramount Skydance has already submitted a bid, and Comcast and Netflix are also reportedly throwing their hats in the ring. However, many lawmakers are opposed to a deal between Netflix and WBD. 

Rep. Darrell Issa (R-California) sent a letter to U.S. Attorney General Pam Bondi, FTC chairman Andrew Ferguson and Gail Slater, assistant attorney general for the Justice Department’s antitrust division, that was later obtained by Variety. 

Related: Is Netflix Going to Snag Warner Bros. Discovery? 

“As you are aware, Netflix is already the dominant streaming platform in the United States and permitting it to absorb a major competitor raises antitrust concerns that could result in a harm to consumers,” Issa wrote

He warned that Netflix already “wields unequaled market power,” and teaming with WBD would increase this influence and push the “combined entity about a 30 percent share of the streaming market: a threshold traditionally viewed as presumptively problematic under antitrust law.”

Senator Roger Marshall, M.D. (R-Kansas) sent a similar letter to the DOJ and the FTC, writing, “Simply put, a deal of this scale risks diminishing competitive pressure, enabling Netflix to raise prices, restrict output, and reduce the variety of content available to consumers. The likely result would be fewer films produced, curtailed theatrical windows, and reduced investment in large-scale productions.”

“I urge you to act decisively to prevent anticompetitive consolidation in this vital sector,” he concluded. 

The Writers Guild of America has also expressed their concern about what a merger between WBD and a streamer would mean. In an October statement, the guild shared their thoughts on what a potential merger between WBD and Paramount would mean. 

“Combining Warner Bros. with Paramount or another major studio or streamer would be a disaster for writers, for consumers, and for competition,” they wrote. “The WGAW and WGAE will work with regulators to block the merger.”

There is no official word yet on whether or not Netflix will extend an offer or if WBD will end up taking it, but it’s clear the potential partnership has plenty of opposition.

Read Next: U.S. Reps Fear Disney, Fox, WBD Sports Streaming Platform Will Become Anticompetitive

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