DOJ probes Netflix’s power over filmmakers in Warner deal review

Fortune

by Josh Sisco, Bloomberg

February 22, 2026

AI-Generated Deep Dive Summary

The Justice Department (DOJ) has expanded its review of Netflix’s proposed $72 billion acquisition of Warner Bros. Discovery Inc., now investigating whether the deal could lead to anticompetitive behavior. The probe, under Section 7 of the Clayton Act and Section 2 of the Sherman Act, focuses on whether Netflix wields unfair leverage over content creators during negotiations for programming. This marks a significant shift from standard merger reviews, signaling that the Trump administration is deeply examining Netflix’s market power. The DOJ’s investigation centers on concerns about Netflix’s dominance in the streaming and content acquisition space. As the largest video streaming service globally and a major buyer of film and TV programming, Netflix spends $20 billion annually on original series and licensed shows. The merger with Warner Bros., one of its chief competitors, could further consolidate Netflix’s market position. The DOJ is particularly interested in whether Netflix uses its size to pressure creators or studios into unfavorable terms, potentially stifling competition. The inclusion of the Sherman Act—a statute more commonly used against illegal monopolies—indicates the DOJ’s serious concerns about Netflix’s potential for monopolization. While Netflix currently holds around 9% of U.S. TV viewing and a larger share of streaming, critics argue that the merger could tip the balance in its favor. The probe also highlights the broader implications for antitrust enforcement, as it marks one of the few instances where both laws are being applied to a merger. Netflix has defended itself, stating it operates in a highly competitive market and does not engage in exclusionary practices. The company’s legal team emphasized its willingness to cooperate with regulators while asserting that any claims of monopolistic behavior are unfounded. Meanwhile, rival bidder Paramount Skydance Corp. stands to benefit from the extended review process, which could delay a DOJ decision on challenging the merger. The outcome of this investigation will have significant implications for

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Originally published on Fortune on 2/22/2026