The US Division of Justice (DOJ) investigation into Netflix’s proposed $72 million takeover of Warner Bros Discovery is scrutinizing whether or not the streaming platform wields anticompetitive leverage over filmmakers and creators in negotiations for buying programming.
In accordance with a report by Bloombergwhich cited a a replica of a civil investigative demand, the DOJ probe is searching for to find out whether or not the proposed Netflix-Warner Bros deal “might considerably reduce competitors or are likely to create a monopoly in violation of Part 7 of the Clayton Act or Part 2 of the Sherman Act”.
Bloomberg additionally reported that the language used within the civil investigative demand signifies that the Trump administration goes for a probe that’s far broader in scope than a typical deal evaluation.
This strategy may show to be a prolonged one, and signifies that the Trump administration is more likely to take many extra months earlier than it decides whether or not to problem the Netflix-Warner Bros deal in courtroom, a delay that’s more likely to profit rival bidder Paramount Skydance Corp.
(It is a creating story. Verify again for updates)