Market Definition In The Digital Age: Antitrust Scrutiny Of The Netflix-Warner Bros. Merger
- IJLLR Journal
- 12 minutes ago
- 2 min read
Mr. Priyank Srivastava, B.A. LL.B. (Hons), School of Law, Christ University, Bangalore
ABSTRACT
In one of the media industry consolidation deals of the century, the suggested acquisition of the main entertainment properties of the Warner Bros. Discovery by Netflix, Inc. announced in December 2025 and estimated to value over US 82.7 billion, marks the beginning of the convergence. The deal would bring together strategically the dominant global streaming platform that Netflix has, and its more than 300 million subscribers with the premier content-creation engine that rival Powerhouse of the company, comprising its film and television production studios, the HBO Max streaming platform and its iconic franchise libraries including DC Comics and Harry Potter. The merger, then, consists of a deep horizontal integration of two immediate rivals in the field of subscription streaming, and also a vertical integration of a large pool of content with a premier distribution structure. Under the United States law, the enforcers will examine the deal in the light of the Section 7 of Clayton Act and the guidelines of the 2023 mergers, with reference to whether the deal can substantially diminish competition. Similar reviews are also expected worldwide such as under the Competition Act 2002 of India, regulators are expected to evaluate the appreciable adverse impact of the transaction on the competitive environment in the fast-developing digital entertainment sector in India. This paper gives a detailed critique on these issues and analyzes the complex form of the deal while assessing its possible anticompetitive impacts The conclusion of the analysis is that, under the circumstances of the scope of the consolidation and the existing climate in the enforcement, there is no chance that regulatory approval will be unconditional. Rather, governments in the U.S. and India and other countries are set to insist on large-scale structural or behavioral solutions, including divestitures of content or forced licensing deals, to address possible competitive, content, consumer, and innovation disadvantages in the industry to allow the merger to occur.
Keywords: Anti-Trust, Mergers and Acquisitions, Netflix & Warner Bros, Streaming Services, OTT
