mike coppola
Sen. Elizabeth Warren (D-MA) and three Democratic lawmakers call for the US Department of Justice to investigate Warner Bros. Discovery (NASDAQ:WBD) to deal with alleged anti-competitive conduct one year after it was completed.
“Antitrust laws seek to promote consumer choice, product variety, and industry innovation,” Warren wrote along with Joaquín Castro (D-TX), David Cicilline (D-RI) and Pramila Jayapal (D-WA). in a letter to the DOJ on Friday. “Accordingly, if a consummated merger results in dramatically less content being available and discourages innovation, the merger should be re-evaluated.”
Warren and the three representatives claim that the Warner Bros. Discovery (WBD) settlement has reduced consumer choice and hurt workers in affected job markets.
Following the deal, WBD announced job cuts and product cancellations, including the cancellation of several titles, including “Batgirl,” “Gordita Chronicles,” “Demimonde” and “The Time Traveler’s Wife,” according to the letter.
“Warner Bros. Discovery has reduced the content available to consumers and will likely continue to limit consumer choice without adequate compensation,” the lawmakers wrote.
Warner Bros. Discovery (WBD) was created a year ago when Discovery combined with AT&T(T)’s WarnerMedia unit.
Senator Warren has been busy trying to oppose consolidation and has focused on other deals in the past year, including transactions in the aerospace, banking and health care industries. Warren wrote a letter to the FTC in January expressing his concern about Amgen’s (AMGN) plan to buy Horizon Therapeutics (HZNP). In late January, Warren urged the FTC to block L3Harris (LHX)’s planned acquisition of Aerojet Rocketdyne (AJRD), arguing it would reduce competition in the defense industry.