Feb 6 (Reuters) – The U.S. Department of Justice is investigating whether Netflix has 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 Justice Department 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 might 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, 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)
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