Donald Trump Flags Antitrust Issues in Netflix–Warner Bros Deal, Vows to Intervene

According to reports, US President Donald Trump expressed worries on December 7th about possible antitrust "problems" in the streaming behemoth Netflix Inc.'s purchase of rival film studio Warner Bros. Discovery Inc. According to Bloomberg, he declared that he would personally intervene to verify the details and deal procedure.

The deal must go through a process, and the world will see what occurs, Trump told reporters at the John F. Kennedy Centre for the Performing Arts in Washington, DC. Additionally, Trump acknowledged meeting Ted Sarandos, co-CEO of Netflix. He praised the business and said that although it has a significant market share, the acquisition is something to think about. It might be an issue.

Trump Taking the Matter in his Own Hands

According to the president Trump, Netflix has a significant market share, which increases significantly when Warner Bros. is involved. Trump confirmed he would be personally involved in managing the process, according to reports from Reuters and Bloomberg. As he arrived at the Kennedy Centre for its yearly awards ceremony, Trump told reporters, "I'll be involved in that decision," according to Reuters.

He did not, however, specify the direction of his choice. It will be up to certain economists to determine that. However, it has a significant market share. According to the Reuters report, Trump stated, "There's no doubt it could be a problem." According to the Bloomberg story, Netflix's $72 billion offer for Warner Bros. Discovery would eliminate HBO Max, its fourth-biggest rival, and establish the largest streaming player in the world. Antitrust authorities are concerned about this increase in market share.

What Triggered Trump to Intervene?

As the combined market share with Warner would exceed the 30% barrier, the US Department of Justice's antitrust division claimed that Netflix's transaction would be illegal. The government agency that might examine the agreement is the Justice Department.

According to the Bloomberg article, Netflix is anticipated to argue that including YouTube (Google) and TikTok (ByteDance) in the market research would "dramatically" lessen its "perceived" market dominance. Ted Sarandos, CEO of Netflix, recently visited with Trump at the White House in an attempt to facilitate the contentious agreement. The executive at the time contended that Netflix wasn't an all-powerful monopoly and that it had experienced its own subscriber losses a few years prior, according to Bloomberg.