Justice Department casts wide net on Netflix's business practices in merger probe, WSJ reports

February 6, 2026 - 19:25

Federal antitrust enforcers are taking a broader look at Netflix's business conduct as part of their review of the company's planned acquisition of Warner Discovery's entertainment assets. According to a new report, the Justice Department's probe now encompasses an examination of whether Netflix has employed potentially anticompetitive tactics in the streaming market.

Investigators are reportedly scrutinizing the company's practices in licensing and producing content, as well as its dealings with competitors and partners. This widened scope suggests regulators are building a comprehensive picture of Netflix's market power and influence before deciding whether to challenge the high-profile merger. The proposed deal would see Netflix absorb major film and television studios alongside a key streaming service, significantly consolidating its position in the increasingly crowded entertainment landscape.

The expanded investigation highlights the Biden administration's continued aggressive stance on antitrust enforcement, particularly within the technology and digital media sectors. A decision to block the merger or require major concessions could dramatically alter the strategic plans of one of streaming's pioneers. The outcome of this probe is being closely watched by industry executives and competitors, as it will set a precedent for future consolidation in the rapidly evolving streaming industry. Netflix and the Justice Department have not publicly commented on the specifics of the ongoing investigation.