Posted in: Movies, Netflix, Opinion, TV, TV | Tagged: netflix, opinion, trump

Trump's DOJ Now Investigating Netflix, Wants to Hear From Hollywood

Donald Trump's Department of Justice is now investigating Netflix's influence - and it wants to hear from Hollywood filmmakers and producers.

They say timing is everything – and in the case of the ongoing drama between David Ellison's Paramount Skydance, Netflix, and Warner Bros. Discovery, it's even more so – especially when the Trump Administration gets involved. Following reporting from Bloomberg late on Saturday, it was confirmed earlier today that U.S. Attorney General Pam Bondi's Department of Justice squad is investigating Netflix's influence over the entertainment industry. Reportedly in the works over the past several weeks, a notice was sent out to the DOJ's Antitrust Division's acting boss, Omeed Assefi, to filmmakers and producers across Hollywood. The deadline for submitting documentation and sworn statements is set at March 23rd, and now we can see why timing is everything (and very interesting).

The news comes as Ellison's company and Warner Bros. Discovery have reached the final 24 hours for Paramount to submit its "best and final offer" to the WBD board. The deadline set by Bondi's DOJ team is three days after the WBD board scheduled a shareholders meeting to finalize the Netflix deal. The investigation itself is expected to add months to the overall regulatory approval process. And the news also hit on the same weekend when Trump threatened Netflix with "consequences" if it didn't fire Susan Rice, the former U.S. ambassador to the United Nations and national security adviser, from its board. Trump's demand came on the heels of right-wing talking head Laura Loomer attacking Rice and the streaming service on social media for comments Rice made during Preet Bharara's podcast, and asking Trump to step in.

"This civil investigative demand is issued pursuant to the Antitrust Civil Process Act …in the course of an antitrust investigation to determine whether there is, has been, or may be a violation of the antitrust laws by conduct, activities, or proposed action of the following nature: the proposed acquisition of Warner Bros. Discovery, Inc. by Netflix Inc, that may substantially lessen competition, or tend to create a monopoly in violation of Section 7 of the Clayton Act, or Section 2 of the Sherman Act," read the request sent out to filmmakers and producers from Trump's DOJ.

To offer some background, Section 2 of the Sherman Act notes: "Every person who shall monopolize, or attempt to monopolize, or combine or conspire with any other person or persons, to monopolize any part of the trade or commerce among the several States, or with foreign nations, shall be deemed guilty of felony, and, on conviction thereof, shall be punished by fine not exceeding $100,000,000 if a corporation, or, if any other person, $1,000,000, or by imprisonment not exceeding 10 years, or by both said punishments, in the discretion of the court."

"Netflix operates in an extremely competitive market. Any claim that it is a monopolist or seeking to monopolize is unfounded. Our success stems from innovation and investment that benefit consumers. We neither hold monopoly power nor engage in exclusionary conduct, and we'll gladly cooperate, as we always do, with regulators on any concerns they may have," shared David Hyman, Netflix's main legal representative. For his part, Netflix co-CEO Ted Sarandos had a direct message for Ellison's Paramount Skydance: "Just put a better deal on the table and see if you can win."

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