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AUTHORSHIP
21 May 2026
Netflix's anti-competitive behavior draws bipartisan ire among lawmakers, advocates
Despite the collapse of Warner Bros. deal, Netflix's anticompetitive practices faces heightened onslaught from lawmakers and advocacy groups

I. Introduction
ISSUE AREAS
ANTITRUST
On December 5, 2026, Netflix announced its long-awaited bid to acquire Warner Bros. for an enterprise value of $82.7 billion. The deal’s anti-competitive implications were met with near-immediate concerns from lawmakers and industry experts, and mounting backlash culminated in a Senate Judiciary Committee hearing in February to scrutinize the hearing. Despite Netflix executives’ apparent efforts to court the White House, the deal would collapse under scrutiny by the Trump administration, which was widely seen as favoring a rival bid by Paramount Skydance.
Though the deal did not come to fruition, Netflix would ultimately be rewarded with a $2.8 billion breakup fee paid by Warner Bros. Discovery. Nevertheless, as sharp bipartisan criticism of the deal during the February hearing showed, the company also comes out of this saga with few friends in Washington. The company’s inability to court favor with the Trump administration to gain merger approval, a common strategy of corporations since January 2025, shows that hostility towards the company is deeply-ingrained among Republican officials. In particular, Netflix’s decision to raise subscription prices after pocketing the breakup fee has already led to renewed criticism from lawmakers and advocates in a political environment where price-gouging concerns are central.
II. Scrutiny of Market Power
RENEWED MONOPOLY CONCERNS
Had it acquired Warner Bros., Netflix would have controlled an absolute share of the global streaming market. But while unsuccessful, the company remains in control of some 33% of the global streaming market per one estimate. This figure is significantly higher than its closest competitor, and one that still gives it enormous market power. Amid a cost of living crisis that has Americans increasingly canceling subscription services to save costs, Netflix’s market power is evidenced by its ability to still raise prices even after a massive windfall.
On April 28, 2026, the Open Markets Institute led a coalition of organizations in raising concerns about Netflix’s anti-competitive behavior in a letter to the Federal Trade Commission (FTC) and Department of Justice (DOJ). In a letter, the organizations raised concerns about Netflix’s pricing power, specifically citing its decision to raise subscription prices in a way that outpaced overall inflation.
Beyond this, the letter also argues that Netflix’s market power has come at the cost of creative professionals’ livelihood; that the DOJ has already engaged in scrutinizing Netflix’s “anticompetitive leverage over creators” is specifically noted. Of additionally interest is that the letter highlights how Netflix’s control of a vast trove of user data entrenches its monopoly position. In recent years, observers have taken increased interest in the role of data collection in bolstering the dominance of tech companies.
Sen. Elizabeth Warren (D-MA), an early critic of Netflix’s effort to acquire Warner Bros., has continued to be vocal about Netflix’s anticompetitive behavior in the aftermath of its collapse. In a March 26, 2026 post on X (formerly Twitter), she noted how, despite its termination fee windfall, “Netflix turned around and raised prices on millions of customers”.
HOSTILITY FROM REPUBLICAN POLITICIANS
Since the second inauguration of Donald Trump, a number of major corporations, notably in the tech sector, have publicly aligned themselves with the White House in what many lawmakers view as an effort to evade antitrust lawsuits and other scrutiny. Meta Platforms and its CEO Mark Zuckerberg, long the target of strong criticism from figures on the political right, illustrate how aligning with Trump can successfully build influence. The Wall Street Journal, among other news outlets, have reported on corporations that have hired attorneys with administration connections to influence the merger approval process.
It is thus notable that Netflix’s similar efforts to build influence within the administration have been unsuccessful. Netflix co-CEO Ted Sarandos’ planned White House meeting when the Warner Bros. merger process was ongoing was cancelled at the last minute; this occurred shortly before Netflix ultimately dropped its bid for the acquisition. Similarly, Netflix’s effort to curry favor with the administration by hiring well-connected lobbying firms evidently did not help the company during the merger approval process. Netflix has long been accused by social conservatives of promoting progressive cultural values through its content, which became a focal point for Republican Senators during the February hearing.
Netflix’s lack of concrete allies on either side of the aisle poses risks for the company’s future amid mounting calls for scrutiny of its anti-competitive behavior. Sen. Mike Lee (R-UT), chairman of the Senate Judiciary Subcommittee on Antitrust, Competition Policy and Consumer Rights, argued the proposed Warner Bros. merger could lead to “substantially lessening competition in streaming markets” if approved. One of Lee’s colleagues, Sen. Roger Marshall (R-KS), specifically echoed concerns about Netflix’s pricing power and impact on creators if the merger would be approved, stating “Prices, choice, and creative freedom are at stake.”
III. Conclusion
Though Netflix hasn’t been able to entirely evade antitrust scrutiny in the past, the company’s modern market power and hostile reception in Washington means it should expect intensified scrutiny in the future. The modern electorate is increasingly hostile towards monopoly power, and increased concerns about media consolidation in particular during the second Trump administration bodes poorly for the company.
Aidan Smith
Founder, Labyrinth Insights

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