February 2, 2026
The Honorable Mike Lee
Chairman
Senate Committee on the Judiciary
Subcommittee on Antitrust, Competition Policy and Consumer Rights
363 Russell Senate Office Building
Washington, DC 20510
The Honorable Cory Booker
Ranking Member
Senate Committee on the Judiciary
Subcommittee on Antitrust, Competition Policy and Consumer Rights
306 Hart Senate Office Building
Washington, DC 20510
Chairman Lee, Ranking Member Booker, and Members of the Subcommittee,
Thank you for holding a hearing entitled “Examining the Competitive Impact of the Proposed Netflix-Warner Brothers Transaction.” As you undertake the important task of evaluating the proposed acquisition of Warner Bros. Discovery, Inc. by Netflix, Inc., National Taxpayers Union strongly urges you to prioritize the consumer welfare standard, which should always serve as the “North Star” for government officials during the examination of any merger or acquisition.
NTU has long advocated for prudent adherence to the consumer welfare standard in antitrust policy. This standard is the backbone of a pro-competitiveness, “light touch” regulatory approach, and helps ensure the needs of taxpayers are not held subservient to the ideological views of bureaucrats or politicians.
In 2021, we led a letter signed by 69 prominent economists who sternly warned against the heavy-handed misuse of antitrust laws to block mergers and acquisitions. The economists noted:
History shows that these antitrust actions and proposals have major potential to: deprive consumers of choices, limit the ability of entrepreneurs to innovate, deny workers and shareholders opportunities to build wealth, confer artificial benefits on competitors, drain “defendant” companies of capital due to legal expenses, and thwart potential growth in the economy as companies are forced to divert resources and attention to legal battles instead of innovation.
In the case of the proposed Warner Bros. acquisition, it would be a serious mistake for the government to intervene in the absence of clear and irrefutable evidence that consumers would be harmed. The all-too-common refrain that “big is bad” should not take precedence over a deliberate and sober analysis of the facts—particularly with a stated goal of promoting competition in the marketplace.
Thank you again for carefully reviewing this proposed acquisition and for prioritizing the consumer welfare standard during your deliberations.
Sincerely,
Brandon Arnold
Executive Vice President