Paramount Warns Lawmakers: Netflix-WBD Merger “Presumptively Unlawful”

Paramount is taking its fight over the Netflix-Warner Bros. Discovery deal to Capitol Hill. The company’s chief legal officer, Makan Delrahim, told a House Judiciary antitrust subcommittee that the merger is “presumptively unlawful” and could give Netflix too much power in the streaming market, according to The Wrap.

Delrahim criticized arguments that platforms like YouTube and TikTok should count as competitors to Netflix or HBO Max. “It asserts, for example, that free, user-generated videos on YouTube and TikTok should be considered an adequate substitute for premium produced content available on Netflix or HBO Max. This is what some call ‘psychedelic antitrust’ — it has no ground in market or legal reality,” he wrote in the letter.

The filing came the same day the subcommittee held a hearing on the streaming industry. While Paramount did not appear in person, lawmakers reviewed written comments from the company. Delrahim also noted that Netflix itself has previously treated YouTube as a non-competitor in its own filings.

Last month, Netflix reached a deal to acquire Warner Bros. Discovery’s studio and streaming assets. WBD’s cable channels are being spun off into a separate company. Paramount has been exploring a hostile bid for WBD after its latest offer was rejected.

Delrahim, who led the Justice Department’s antitrust division during Donald Trump’s first term, emphasized that the government’s definition of the streaming market will be crucial. Congress has oversight of the Justice Department but cannot directly approve or block the merger. Regulatory review will also involve European authorities and state attorneys general.