Eric Fruits Quoted in JD Supra on Antitrust Presumption in Netflix-WBD Merger
ICLE Senior Scholar Eric Fruits was quoted in an article in JD Supra discussing the antitrust challenges facing the proposed acquisition of Warner Bros. Discovery (WBD) by Netflix. Eric’s analysis, originally noted in Reason, addresses the concentration thresholds under the U.S. Department of Justice’s (DOJ) 2023 Merger Guidelines. Read the full article here.
Globally, Netflix accounts for 46% of streaming usage, and adding HBO Max’s 128 million subscribers would push that share above 50% in key markets, as reported by CNBC. Eric Fruits, senior scholar at the International Center for Law & Economics, noted in Reason that under the DOJ’s 2023 Merger Guidelines, the deal would trigger a “structural presumption of anticompetitive effects,” given the Herfindahl-Hirschman Index – the standard yardstick used to measure market concentration – increase of 432 points. In a highly concentrated market, a jump of 200 points triggers such a presumption.