"This week the Senate Judiciary subcommittee responsible for antitrust issues held a hearing on the proposed merger between Netflix and Warner Brothers Discovery. The Monopoly Man in attendance embodied the concern that was top of mind for every committee member: Netflix is already the dominant player in subscription video-on-demand, and its acquisition of Warner Bros. could cement its unrivaled monopoly."
"As Chairman Mike Lee put it, Netflix could become "the one platform to rule them all" if the merger is allowed to happen. This outcome would harm both consumers of streaming services as well as the talent that generates such compelling content. Not surprisingly, Netflix CEO Ted Sarandos tried to deflate concerns by casting a sprawling definition of the relevant market in which Netflix competes. His prepared remarks mention YouTube, Netflix's purported rival, 25 times."
Senate Judiciary antitrust subcommittee examined the proposed Netflix–Warner Bros. Discovery merger amid concerns that it would entrench Netflix as the dominant subscription video-on-demand provider. Committee members argued that the acquisition could cement an unrivaled monopoly, harming consumers and creative talent. Netflix positioned the market broadly to include YouTube and short-form platforms like TikTok and Instagram, arguing low share of overall TV viewing. The comparison to ad-supported, amateur content was criticized as misleading because competing for attention does not equate to being in the same antitrust market. Courts instead use a hypothetical monopolist test evaluating whether a small price increase would be profitable.
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