U.S. antitrust regulators are widening their focus on Netflix as the streaming giant pursues one of the most ambitious consolidation plays in entertainment history. According to reporting by the Wall Street Journal, the U.S. Department of Justice has issued a civil subpoena as part of its review of Netflix’s proposed $82.7 billion acquisition of Warner Bros Discovery’s studios and streaming operations, signaling a deeper examination of the company’s competitive behavior beyond the transaction itself.

A Broader Lens on Market Power

At the center of the inquiry is whether Netflix has engaged in exclusionary practices that could entrench or extend its market dominance. The subpoena, viewed by the Wall Street Journal, asked another entertainment company to describe any conduct by Netflix that could reasonably be seen as reinforcing monopoly power. That language suggests regulators are not limiting their assessment to deal mechanics, but are also probing Netflix’s broader influence over distribution, content licensing, and industry dynamics.

Netflix has said it is not aware of any investigation outside of the standard merger review process and that it is cooperating constructively with the Justice Department. Legal representatives for the company emphasized that they have received no indication of a separate monopolization probe, framing the review as routine given the scale of the transaction.

Warner Bros at the Center of a Bidding Battle

The assets in question carry enormous strategic weight. Warner Bros’ film and television studios, along with franchises such as Game of Thrones, Harry Potter, and DC Comics’ Batman and Superman, represent some of the most valuable intellectual property in global entertainment. That appeal has drawn competing interest, including from Paramount Skydance, whose acquisition bid was unanimously rejected by Warner Bros’ board as inadequate.

The DOJ is reportedly reviewing not only Netflix’s proposal, but also the competing Paramount bid, examining whether either transaction could materially reduce competition. Regulators have also requested information on how past studio and distributor mergers affected the market for creative talent, including how contract terms vary across studios. This focus reflects growing concern that consolidation could weaken bargaining power for writers, actors, and producers, even if consumer prices remain stable.

Political and Global Scrutiny Intensifies

The review is unfolding amid heightened political sensitivity around media consolidation. Netflix co-CEO Ted Sarandos was questioned by U.S. senators earlier this week on how the deal could reshape competition across the entertainment ecosystem. Lawmakers are increasingly wary that streaming giants could leverage scale to crowd out rivals and dictate terms across production and distribution.

International regulators are also watching closely. The proposed transaction could face parallel scrutiny in the United Kingdom and the European Union. In the UK, more than a dozen politicians and former policymakers have urged competition authorities to launch a full investigation. EU antitrust regulators are likewise expected to assess rival bids simultaneously, raising the prospect of a complex, multi-jurisdictional review process.

Implications for the Streaming Industry

The DOJ’s early-stage probe highlights a broader shift in antitrust enforcement. Rather than focusing narrowly on consumer pricing, regulators are increasingly examining structural power, control over talent, and long-term competitive effects. For Netflix, the outcome could determine not just the fate of a single deal, but the limits of expansion in an industry already dominated by a handful of global platforms.

What Comes Next

As the review progresses, investors and industry players will watch for signs that the inquiry escalates beyond a conventional merger assessment. A tougher stance could slow consolidation across media and streaming, while approval would reinforce the trend toward fewer, larger content empires. Either way, the case is shaping up to be a defining test of how antitrust rules apply in the age of global streaming dominance.