Grassley Calls for Careful Scrutiny of Proposed Netflix-Warner Brothers Merger

Remarks by Senator Chuck Grassley of Iowa
Chairman, Senate Judiciary Committee
Examining the Competitive Impact of the Proposed Netflix-Warner Brothers Transaction
Tuesday, February 3, 2026

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America pioneered the film industry, from Hollywood musicals to John Wayne westerns and the rise of modern television.

Families still enjoy watching shows together, and it remains a very important part of our culture.

But how people watch these productions has changed quickly.

The proposed transaction the Committee will focus on today would combine Netflix, a leading subscription streaming platform, with Warner Brothers' studio assets and HBO Max, another streaming service.

This proposed merger could affect prices and choices.

Congress enacted the antitrust laws to protect competition and consumers.

The Department of Justice and the Federal Trade Commission must apply those laws using a neutral, evidenced-based approach. And Congress has an oversight role to play, and that's why we're here today.

Opponents warn this deal could reduce head-to-head competition in subscription streaming, and lead to higher prices or less innovation.

Families in my state of Iowa and across the country already juggle multiple subscriptions, and they deserve real competition that keeps prices in check.

Opponents also caution that a combined firm could limit access to popular content, limit licensing options and make it harder for rivals to emerge and compete.

Theater owners worry about shorter release windows and fewer wide theatrical releases, which could harm neighborhood cinemas, those they employ and affect local economies.

Competition in this sector doesn't only depend on who has the most subscribers.

High-quality franchises and libraries can shape competition by affecting what rivals are able to license and also affect what choices consumers ultimately have.

Control of both a large platform and a deep library of films and shows can affect the bargaining power across the industry. So, I say, regulators ought to examine those dynamics carefully.

The companies will argue this transaction will improve quality, expand distribution and create efficiencies that help them invest more in content.

Those claims deserve fair scrutiny.

Any claimed benefits must result from the merger itself, be verifiable and likely make content available to more families.

Further, and importantly, merger review shouldn't be used as a strategy to keep a company from moving forward for years by limiting its ability to pursue lawful alternatives while market conditions continue to change.

I encourage our antitrust regulators to carefully scrutinize this transaction to ensure that competition is not undermined and to make sure that consumers are protected.

I thank our witnesses today for their testimony, and I look forward to the discussion.

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