House Panel Raises Antitrust and Political Concerns Over Netflix–Warner Bros. Merger

The hearing unfolded as Netflix and a rival bidder, Paramount Skydance Corp., vie for control of Warner Bros. while lobbying the Trump administration. Warner Bros., a major global studio behind franchises such as Harry Potter, DC Comics films, and The Matrix series, rejected Paramount’s latest offer on Wednesday and said it plans to proceed with Netflix’s proposal, per Bloomberg.

During the House Judiciary Subcommittee session, Rep. Lance Gooden, a Texas Republican, pointed to rising subscription costs across streaming services and questioned whether blocking consolidation would protect competition or risk pushing companies out of business. “What impact would preventing a merger between Netflix and Warner Bros. or Paramount, or any other company have on the market or any of these businesses?” Gooden asked. “And will we ensure competition or will it lead to a situation where companies will end up running out of business like Blockbuster?”

Rep. Darrell Issa, a California Republican, echoed concerns about consumer costs, saying, “The reality is that the price and the cost of receiving a streaming service on an adjusted basis led by Netflix has gone up but not down,” according to Bloomberg.

Related: Warner Bros. Stands by Netflix Deal After Rejecting Paramount’s Sweetened Bid

If completed, the $82.7 billion deal would combine Netflix’s streaming platform with Warner Bros.’ film and television studios, HBO Max, and HBO, creating an entity that would control more than 30% of paid streaming content. Supporters argue the scale could help stabilize an industry that has struggled to turn consistent profits, while critics warn it could limit consumer choice, per Bloomberg.

Democrats on the panel voiced sharper opposition. Rep. Jerry Nadler of New York said the movie theater industry and the Writers Guild of America have raised “great alarm” about the transaction, citing fears of job losses and reduced competition. “If Netflix must get bigger in order to compete, that is a sign of a market that is already highly out of balance,” Nadler said.

Experts testified that antitrust scrutiny may hinge on how regulators define the relevant market. Jessica Melugin, director of the Center for Technology & Innovation at the Competitive Enterprise Institute, said enforcement agencies may focus narrowly on subscription video-on-demand, but that approach could overlook alternatives consumers consider. “Government efforts to block mergers will likely attempt to establish the narrowest possible definition of the relevant market, mainly subscription video-on-demand exclusively,” she said, adding that broadcast, cable, satellite, and even social media platforms such as TikTok compete for viewers’ attention, according to Bloomberg.

The hearing also highlighted political sensitivities surrounding the deal. Rep. Jamie Raskin of Maryland questioned whether antitrust review could be influenced by presidential involvement. “The President seems to want Paramount and Netflix to compete for his approval of a deal—both companies are already lobbying the White House right now,” Raskin said. “To state the obvious, President Trump is not an antitrust expert, nor is he committed to antitrust law.”

Raskin raised concerns about Warner Bros.’ ownership of CNN, noting Trump’s long-standing criticism of the network and asking whether influence over the news outlet could sway approval, per Bloomberg. He also cited former Justice Department antitrust official Roger Alford, who has criticized lobbying efforts that shape merger enforcement, including a settlement that cleared a $14 billion deal between Hewlett Packard Enterprise and Juniper Networks.

As regulators consider the Netflix–Warner Bros. tie-up, lawmakers signaled that the outcome could reshape not only the streaming landscape but also how antitrust policy is applied in an era of rapid media consolidation, according to Bloomberg.

Source: Bloomberg