Netflix and Paramount are currently fighting for the restriction of Warner Bros. Discovery as stated by Deadline. A takeover attempt was granted by Paramount during Warner Bros. Discovery’s seven-day discussions with the streamer, as they settled for $108 billion against Netflix. Currently, Netflix is undergoing the Antitrust Division at the Department of Justice.
Omeed Assefi, the DOJ’s Antitrust Divisions Acting Assistant Attorney General stated to producers and producers:
This civil investigative demand is issued pursuant to the Antitrust Civil Process Act … in the course of an antitrust investigation to determine whether there is, has been, or may be a violation of the antitrust laws by conduct, activities, or proposed action of the following nature: the proposed acquisition of Warner Bros. Discovery, Inc. by Netflix Inc, that may substantially lessen competition, or tend to create a monopoly in violation of Section 7 of the Clayton Act, or Section 2 of the Sherman Act.
The real question is: how much authority does Netflix have over the industry? Pam Bondi, Attorney General, and her team want to know, which is why those who received the DOJ’s Criminal Investigation Department must respond by March 23. The day is three days shy of a WBD shareholder meeting to settle if they will proceed with Netflix’s bid of $83 billion investment for Warner Bros. Discovery and its content.
Second 2 of the Sherman Act, which the Department of Justice believes Netflix violates, is as follows:
Every person who shall monopolize, or attempt to monopolize, or combine or conspire with any other person or persons, to monopolize any part of the trade or commerce among the several States, or with foreign nations, shall be deemed guilty of felony, and, on conviction thereof, shall be punished by fine not exceeding $100,000,000 if a corporation, or, if any other person, $1,000,000, or by imprisonment not exceeding 10 years, or by both said punishments, in the discretion of the court.
Netflix’s Legal Officer David Hyman expanded on the topic:
Any claim that it is a monopolist, or seeking to monopolize, is unfounded. Our success stems from innovation and investment that benefit consumers. We neither hold monopoly power nor engage in exclusionary conduct and we’ll gladly cooperate, as we always do, with regulators on any concerns they may have.
Having received the CID, a producer who remains anonymous adds a comment of their own: “This is going nuclear stuff, though not surprising. Netflix’s going to get a lot bigger with Warner.” Trump himself said that out loud. “So c’mon, what did anyone expect?” Representatives for Warner Bros. Discovery, Paramount, and the Department of Justice declined to speak with Deadline on the topic of the CID. Netflix itself is skeptical of the paperwork, claiming never received it.
The battle over control of the merger remains unclear.
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