Feb 6 (Reuters) – The U.S. Department of Justice is investigating whether Netflix engaged in anti-competitive tactics as part of the streaming giant’s proposed acquisition of Warner Discovery’s studios and streaming service, the Wall Street Journal reported on Friday.
In a civil subpoena viewed by the WSJ, the department asked another entertainment company to “describe any other exclusionary conduct on the part of Netflix that would reasonably appear capable of entrenching market or monopoly power”.
The DOJ is also reviewing Paramount‘s proposed acquisition bid, which Warner has told shareholders to reject, according to the report.
In its subpoena, the department asked whether either deal could hurt the competition. It also asked how past mergers of studios or distributors had affected competition for creative talent and sought information on how talent contracts vary between studios, WSJ said.
“Netflix is not aware of any investigation into our business outside of the standard merger review process,” a spokesperson for the company said in an emailed statement to Reuters, adding that it was “constructively engaging” with the DOJ as part of a standard review of the proposed deal.
The DOJ investigation is at an early stage, according to the report.
Paramount, Warner Bros and the Department of Justice did not immediately respond to Reuters requests for comment.
(Reporting by Juby Babu in Mexico City; Editing by Pooja Desai)
