In the three days since Netflix announced its planned $83 billion acquisition of Warner Bros., neither the Federal Trade Commission (FTC) nor the Justice Department's antitrust division has released public statements about whether they will sue Netflix for anticompetitive conduct. But that doesn't mean the government won't impact the deal. On Sunday, President Donald Trump promised that he'll "be involved in that decision," in yet another instance of Republican central planning.
To be sure, there are legally sound reasons for the antitrust enforcers to bring action against Netflix's deal with Warner Bros. Section 7 of the Clayton Antitrust Act, traditionally enforced by the FTC, outlaws acquisitions "the effect of [which] may be substantially to lessen competition, or to tend to create a monopoly." Likewise, Section 2 of the Sherman Antitrust Act, typically invoked by the Justice Department, forbids attempts "to monopolize any part of the trade or commerce."
