A group of more than a dozen U.K. politicians and former policymakers are urging the country’s Competition and Markets Authority to launch a review into the $83 billion Netflix-Warner Bros. deal, according to the Financial Times.
In a letter to the watchdog’s CEO Sarah Cardell, the group expressed concerns that the deal could “cement an already dominant player” in the TV streaming market and lead to a “substantial lessening of competition with damaging consequences for consumers, the U.K.’s world-leading creative industries and the U.K. cinema industry.”
“At a time when the British consumer can ill-afford more price increases, Netflix would possess an unprecedented ability to raise prices to access television and films,” the letter reportedly states. “Ultimately, we fear the proposed acquisition will result in less choice for consumers.”
Signatories on the letter include Chris Smith, Oliver Dowden and Karen Bradley, who have all served in the role of U.K. secretary of state for culture, media and sport, as well as former BBC director-general Tony Hall, News Media Association chair and Telegraph Media Group deputy chair Guy Black and former House of Lords leader Tina Stowell.
Netflix has been engaging with regulators, including the U.S. Department of Justice and European Commission, and expects its deal to close in the next 12 to 18 months. The DOJ issued a second request for information on the Netflix deal on Jan. 16.
“We are in contact with regulatory bodies in all relevant jurisdictions, including the CMA,” a Netflix spokesperson told TheWrap. “We’re highly confident in the regulatory process. This deal is pro-consumer, pro-innovation, pro-worker, pro-creator and pro-growth.”
The CMA declined to speculate on cases outside of a formal investigation. Representatives for Warner Bros. did not immediately return TheWrap’s request for comment.
The group’s letter comes after U.K. Secretary of State for Culture, Media and Sport Lisa Nandy met with Paramount CEO David Ellison earlier this month to discuss issues in the film and TV industry.
Ellison is seeking to thwart the Netflix-Warner Bros. deal with a $108.4 billion hostile takeover bid. The tender offer’s deadline has been extended to Feb. 20 and is under review by the DOJ, who issued a second request for information. Ellison has said that a potential deal with Warner Bros. would close within a year.
Paramount is also launching a proxy fight urging shareholders to block the Netflix-Warner Bros. deal and pending spinoff of the latter’s cable networks into Discovery Global in the next six to nine months, as well as executive compensation arrangements tied to the deal. Shareholders are expected to vote on the Netflix deal by April.
In addition to the scrutiny by regulators, Netflix co-CEO Ted Sarandos and Warner Bros. chief strategy officer Bruce Campbell will testify before the Senate at an antitrust hearing on Feb. 3.
