Senators Grill Netflix CEO Over Warner Bros. Deal as Antitrust Fears Mount

The Senate Judiciary Committee’s Subcommittee on Antitrust, Competition Policy and Consumer Rights convened a hearing to examine whether the deal would give Netflix too much power over content, consumers and workers, according Deadline.

Opening the hearing, Sen. Mike Lee of Utah, who chairs the subcommittee, framed the transaction as one of unusual magnitude with far-reaching consequences. He said the proposed merger between the world’s largest streaming service and one of Hollywood’s most storied studios raises “serious antitrust concerns that warrant scrutiny,” highlighting the scale of the consolidation, per Deadline.

Lawmakers zeroed in on how the deal could affect competition not only among streaming platforms but also within the labor market for writers, actors and producers. Lee warned that Netflix and Warner Bros. are currently major rivals in the race to develop films and television shows, and merging them would mean fewer employers competing for creative talent. He also raised alarms about what he described as the risk of “vertical foreclosure,” arguing that a combined Netflix–Warner Bros. could tilt the playing field by favoring its own titles over competitors’ offerings on a platform that already commands massive reach, according Deadline.

In addition to concerns about streaming competition, senators pressed Sarandos on how the acquisition might impact movie theaters and the broader distribution ecosystem. With Warner Bros.’ deep library and production pipeline folded into Netflix, critics fear the company could limit licensing to rival platforms or reduce the number of films that receive traditional theatrical releases, thereby squeezing cinemas and independent distributors.

Related: Film Groups Ask State Attorneys General to Challenge Netflix’s Bid for Warner Bros.

Democrats on the panel echoed those worries. Sen. Cory Booker of New Jersey, the subcommittee’s ranking member, said that selling Warner Bros. to any major competitor could further concentrate power in the industry and threaten jobs across Hollywood. Booker argued that fewer buyers for studios often leads to fewer projects being greenlit, which in turn could affect “tens of thousands” of workers who depend on steady production, per Deadline.

The hearing also highlighted the broader battle over Warner Bros. Discovery, which has attracted interest from other media giants. Booker revealed that he had invited Paramount CEO David Ellison, whose company has submitted a rival bid for Warner Bros., to testify publicly but that Ellison declined. According to Booker, Ellison said he did not see a public appearance as “useful or helpful,” though the senator noted they had spoken privately, according Deadline.

Throughout the session, Sarandos defended Netflix’s strategy and the potential benefits of combining the two companies, but lawmakers remained skeptical about the implications for consumers. Several senators warned that fewer independent studios and streaming services could ultimately mean higher subscription prices and less choice for viewers.

Source: Deadline