What happened

The U.S. Department of Justice has opened a probe into whether Netflix engaged in anticompetitive practices in its bid to buy assets of Warner Bros. Discovery, including the Warner studios and the HBO Max streaming service. The Wall Street Journal reports, citing internal agency documents.

"The company considers the agency's actions a routine review."

— Steven Sunshine, attorney for Netflix

What the allegations concern

The DOJ is analyzing several points: whether negotiations or deal terms could have created advantages for Netflix that would harm competition, and whether the bid should be viewed as a horizontal merger (competitors in the same market) or a vertical deal (a distributor and a content supplier). The agency has also requested information about contracts with creative talent — a key indicator of whether the combination could change terms for creators.

Key facts

Netflix announced the deal on December 5; the price is roughly $82.7 billion. If subscriber bases were combined, Netflix and HBO Max would potentially control about 30% of the U.S. subscription streaming market — a figure that drew regulators' attention. Netflix says many HBO Max subscribers already use its service (the company reports up to 80% overlap) and that the combined entity would represent only about 10% of total household viewing time.

Meanwhile, Paramount has filed suit seeking more information about the deal, and Warner must spin off its Global Networks unit by the third quarter of 2026 as part of its planned restructuring timeline. The deal is planned to close in 12–18 months, but the final timing could change due to regulatory reviews.

Why this matters for viewers and the market

Cases of this scale decide more than market share for large corporations. They determine how concentrated control will be over what content reaches mass audiences, what working conditions will look like for creators, and what prices and choices consumers will face. Antitrust enforcement is about preserving competition that fuels product diversity and innovation.

Antitrust experts point to two main risks: horizontal concentration through the acquisition of direct competitors and vertical integration, when a distributor gains control over key content. Each of these scenarios has different legal and practical consequences.

What’s next

The investigation is at an early stage; merger reviews often last up to a year, sometimes less. Possible outcomes range from denial of approval or requirements for structural/behavioral remedies to approval without changes. Decisive will be the evidence on the deal's market impact and the contractual terms with creative talent.

Why this matters for Ukraine

For Ukraine, which is defending information security and cultural diversity during wartime, precedents in the regulation of major media deals in the U.S. matter. They shape global norms on concentration of media ownership and can affect access to content, funding for creative projects, and international distribution of Ukrainian films and series.

Summary: The Justice Department has launched an important review — a test at the edge of the streaming market: whether it is acceptable for a few giants to set the rules of the game or not. Now it is up to regulators and courts — their decision will determine not only the fate of $82.7 billion but also the future balance of power in the global media industry.