Attorney General Knudsen asks USDOJ to review proposed Netflix & Warner Brothers Merger

HELENA – Montana Attorney General Austin Knudsen led a coalition of 11 state attorneys general in asking the United States Department of Justice (USDOJ) to review the proposed merger between Netflix and Warner Brothers, which will stifle competition and increase prices for Americans.

The letter asks USDOJ Acting Assistant Attorney General Omeed Assefi to review the proposed merger under the Clayton Antitrust Act, which seeks to prevent anticompetitive practices including mergers and acquisitions when they substantially reduce competition. If the merger is successful, it would lead to a bevy of anticompetitive effects, including higher subscription prices, lower quality content, and reduced competition stemming from Netflix’s elimination of its current Warner Brothers–owned rival, HBO Max.

“This massive consolidation would place an unprecedented amount of content, distribution power, and market influence into the hands of a single corporation,” Attorney General Knudsen said. “History shows us what happens when industries become dominated by a few giants: prices rise, choices shrink, and innovation suffers.”

Additionally, the merger threatens to put movie theater owners out of business and their tens of thousands of employees out of their jobs. Cinema United, a trade group that includes America’s largest movie theater chains like AMC and Regal, have called the proposed Netflix merger “culturally catastrophic.” And Netflix’s CEO has called movie theaters an “outdated concept” and an “outmoded idea.”

Nebraska Attorney General Mike Hilgers co-led the letter with attorneys general from Alabama, Alaska, Iowa, Kansas, North Dakota, South Carolina, Tennessee, Utah, and West Virginia also joining the letter.

Earlier this month, Attorney General Knudsen wrote an op-ed detailing how the proposed merger is bad for consumers, creativity, and competition.