FCC Chairman Raises Competition Concerns Over Netflix–Warner Bros. Discovery Deal

Federal Communications Commission Chairman Brendan Carr has raised significant antitrust and competition concerns regarding Netflix Inc.’s proposed acquisition of Warner Bros. Discovery Inc.’s studios and streaming businesses, according to recent reporting from Bloomberg. While Carr acknowledged Netflix’s impressive rise through organic growth, he warned that the proposed deal could intensify consolidation in the already crowded streaming market, potentially limiting competition and consumer choice.

In an interview, Carr, a Trump-appointed FCC chairman, described Netflix’s expansion as “fantastic” but emphasized that the company’s massive scale makes any major acquisition particularly sensitive from a competition standpoint. He noted that combining Netflix with Warner Bros. Discovery’s extensive content library, production assets, and streaming operations could further concentrate power in the hands of a single dominant player in the global streaming industry.

Carr contrasted this with a potential acquisition of the same Warner assets by Paramount Global and Skydance Corp. He indicated that such a deal would raise fewer competition concerns, primarily because Paramount’s streaming platform remains significantly smaller than Netflix. According to Carr, the relative size and market influence of the acquiring company matter greatly when evaluating consolidation risks.

Although the FCC does not have direct regulatory authority over Netflix’s proposed acquisition of Warner Bros. Discovery, Carr explained that the commission could still play a role if Paramount were to pursue a competing bid. This is because Paramount, which owns CBS, would likely need FCC review if it raises funding from foreign investors to finance the transaction.

Warner Bros. Discovery agreed last month to sell a substantial portion of its studios and streaming operations to Netflix, a move that immediately drew opposition from Paramount. Paramount reportedly launched a campaign aimed at regulators and Warner Bros. Discovery shareholders, urging them to reject Netflix’s offer in favor of its own bid. Despite this pressure, the Warner Bros. Discovery board has continued to support the Netflix agreement, signaling confidence in the strategic and financial merits of the deal.

As regulatory scrutiny intensifies, the Netflix–Warner Bros. Discovery acquisition is shaping up to be one of the most closely watched media and streaming deals in recent years, with major implications for competition, content distribution, and the future of the global streaming market.