DOJ Antitrust Investigation: Netflix-Warner Bros. Discovery Merger Under Federal Scrutiny

The Department of Justice is investigating whether Netflix's $83 billion acquisition of Warner Bros. Discovery would give the streaming giant monopoly power over filmmakers and producers—not consumers.

In this episode of The Option, we explain the DOJ's formal antitrust inquiry into the Netflix-WBD deal and the legal theory of "monopsony"—monopoly power over sellers rather than buyers. We break down how traditional antitrust focuses on consumer harm, why the DOJ is instead examining Hollywood labor markets, and what this means for screenwriters' negotiating leverage.

Key topics include: Ted Sarandos Senate testimony, WGA opposition to the merger, Hart-Scott-Rodino waiting period, creator economics in streaming, and why this investigation adds at minimum six months to the deal timeline while setting precedent for Disney, Apple, and Amazon's future entertainment acquisitions.

Keywords: DOJ antitrust Netflix, Netflix WBD merger investigation, monopsony entertainment, streaming regulation 2026, Ted Sarandos Congress, WGA merger opposition, creator economics, entertainment antitrust law