Netflix is under mounting scrutiny on two fronts: aggressive subscription practices affecting Australian consumers and an escalating U.S. Justice Department investigation into whether the streaming giant is using its market power to suppress competition.

In Australia, subscribers have raised concerns about Netflix’s latest push to drive growth by prompting users to sign up family members or friends through an interface that critics say makes it difficult to decline. The sign-up flow initially presents no clear “No” option, instead redirecting users to another page where an incorrect selection can result in an immediate charge. Consumer advocates argue the process risks misleading users and raises questions about consent and transparency.

Those concerns come as Netflix faces far larger questions in the United States, where the Department of Justice (DOJ) has issued subpoenas to determine whether the company has engaged in “exclusionary conduct” as part of its proposed US$83 billion acquisition of Warner Bros. Discovery, including its studios and HBO Max streaming service.

Regulators are examining whether the deal would tip Netflix from dominant market leader into monopoly territory. While streaming has traditionally been viewed as an oligopoly—shared among major players such as Disney+, Amazon Prime Video, Apple TV+, and Paramount+—the sheer scale of a combined Netflix–Warner entity has shifted the debate.

Analysts estimate the merged company would control roughly 30 to 33 per cent of the global subscription video-on-demand market, a level that typically triggers heightened antitrust concern. While Netflix is not legally classified as a monopoly, the DOJ is investigating whether its growth strategy reflects monopolistic tendencies.

Netflix disputes that characterisation, arguing it competes not just with streaming rivals but for “human attention” across platforms including YouTube, TikTok and video games. The company also claims that even with HBO Max, the combined service would represent only about 10 per cent of total viewing time in markets such as the United States.

Steven Sunshine, a lawyer for Netflix, said the company believes the DOJ review is routine. “We have not been given any notice or seen any other sign that the DOJ is conducting a separate monopolization investigation,” Sunshine said.

Netflix and Warner Bros. Discovery have both expressed confidence the deal will receive regulatory approval, framing it as a vertical merger between distributor and content supplier rather than a consolidation of direct competitors.

However, the outcome has major implications for international markets including Australia. A successful merger could reduce competition for licensing deals that local services such as Stan and Binge have historically relied on to access Warner content. Analysts warn that consolidation could also drive higher subscription prices through bundled services and accelerate content fragmentation, forcing consumers to maintain multiple subscriptions.

The DOJ has also raised concerns that a Netflix-owned Warner Bros. could bypass traditional theatrical releases, pushing major films directly to streaming—potentially undermining cinemas and established release windows.

Complicating matters further, Paramount Global has launched a rival bid for Warner assets. If Netflix’s deal is blocked, Paramount could emerge as the frontrunner, though regulators have signalled that transaction would face similar antitrust scrutiny. In a worst-case scenario, Warner could be forced to sell off assets individually, including CNN or major film studios such as DC or New Line Cinema.

Ted Sarandos, Netflix’s co-CEO, told a Senate Judiciary Committee last week that a bundled Netflix–HBO Max service would ultimately lower prices for consumers. Regulators, however, remain unconvinced, signalling a tougher stance on Big Tech acquisitions of legacy media companies.

A decision by the Justice Department to block the deal would send a clear message across the industry: market dominance alone may no longer be enough to justify expansion.