The Justice Department is taking a hard look at Netflix's business practices as part of its review of the streaming giant's proposed acquisition of Warner Bros. Discovery's studios and the HBO Max streaming service.
According to a civil subpoena reviewed by The Wall Street Journal, federal investigators are examining whether Netflix has engaged in conduct that could squeeze out rivals or cement its dominance if the deal advances.
The inquiry suggests the Justice Department is exploring whether the merger could pave the way for a future monopoly — a key concern under U.S. antitrust law, according to the report.
In one question sent to another entertainment company, the department asked for details about any "exclusionary conduct" by Netflix that could help it entrench market power or monopoly power, the report said.
Netflix agreed in December to acquire Warner Bros. Discovery's studios and HBO Max in a $72 billion cash deal, offering $27.75 per share.
Paramount has since launched a competing hostile bid valued at $77.9 billion for all of Warner Bros. Discovery, including major cable brands such as CNN, TNT, and the Food Network.
The Justice Department is reviewing that bid as well, and Warner Bros. Discovery has urged shareholders to reject Paramount's offer.
Federal regulators are also seeking information on how past media mergers affected competition, particularly in the fight for creative talent, and whether contracts for actors, writers, and producers differ across studios.
Netflix says the probe is routine.
Steven Sunshine, a lawyer for the company, said Netflix has received no indication that the Justice Department is pursuing a separate monopolization case. A Netflix spokeswoman said the company is cooperating fully and believes the merger would create value for consumers.
The review is still in its early stages and could take months. Not all antitrust investigations result in lawsuits or blocked deals.
Combined, Netflix and HBO Max would account for roughly 30% of U.S. streaming subscriptions.
Netflix argues that figure is misleading, noting most HBO Max subscribers already have Netflix and that competition includes platforms like YouTube.
© 2026 Newsmax. All rights reserved.