DOJ is investigating if Netflix used anticompetitive tactics as part of its merger probe

Netflix’s acquisition of Warner Bros. Discovery isn’t quite a done deal yet. As first reported by The Wall Street Journal, the US Department of Justice has started its probe of Netflix’s proposed purchase, but is notably interested in whether the streaming giant was involved in any anticompetitive practices. According to the civil subpoena seen by WSJ, the Justice Department is looking into any “exclusionary conduct on the part of Netflix that would reasonably appear capable of entrenching market or monopoly power.”

While Netflix announced plans to acquire Warner Bros. Discovery in December at a value of $82.7 billion, the deal was expected to close in 12 to 18 months, subject to required regulatory approvals. The DOJ has the power to block the transaction and this investigation could hint at the agency’s approach, which may involve proving that Netflix put its competition at an unfair advantage.

Netflix’s attorney, Steven Sunshine, told WSJ that this probe was standard practice and that, “we have not been given any notice or seen any other sign that the DOJ is conducting a separate monopolization investigation.” Netflix also said in a statement that it’s “constructively engaging with the Department of Justice as part of the standard review of our proposed acquisition of Warner Bros.” According to WSJ, the investigation is still in its early stages and could take up to a year to complete.