Netflix’s proposed acquisition of Warner Bros. Discovery’s streaming and entertainment assets could be one of the most significant antitrust battles of our time. The deal, which would combine Netflix with New Warner Bros. studios, HBO, and the HBO Max streaming service, is receiving scrutiny from federal enforcers and lawmakers.
McCarter & English partner and former DOJ Antitrust Division attorney Robin Crauthers spoke with Corporate Counsel to discuss the deal and predicted that consolidation would give the combined entity excessive market power when purchasing content from writers, actors, and other creatives, noting that she expects those groups to be vocal before the DOJ and Congress, and to push for market protections alongside consumer advocates. She also cautioned that the proposed merger could give Netflix greater power to impose cancellations fees or require longer subscription commitments, both of which would impact consumers.