Category: Antitrust
Amazon wants Warner Bros. so it can rule your screen
Last month, Warner Brothers Discovery put itself up for sale, triggering what could become a bidding war for one of America’s most iconic studios. Days later, reports emerged that Amazon plans to make a run at the company, immediately raising the stakes.
Consumers and regulators should treat every Big Tech bidder with skepticism, but Amazon’s interest demands special scrutiny. The world’s largest online retailer has a long record of distorting markets, crushing rivals, and cozying up to foreign adversaries — most notably China. Letting Amazon absorb yet another major media asset would tighten its grip on an entertainment industry already buckling under corporate consolidation.
Why would antitrust officials hand Amazon even more power in a sector already suffocating under concentration?
Amazon may be a household name, but it is not an America-first company. It bullies smaller retailers, copies their ideas, and funnels profits and supply-chain leverage through China. That behavior undermines the ingenuity and fair competition that built the U.S. economy.
Amazon already wields enormous influence over media. Last year, Prime Video topped U.S. streaming charts for the third straight year. Amazon controls a sprawling production studio, reinforced by its 2022 purchase of MGM. It holds high-dollar sports rights, including “Thursday Night Football” and an 11-year deal with the NBA.
Amazon doesn’t need Warner Brothers Discovery to survive. It wants the company to force more Americans into its digital universe, dominate an even larger share of the market, and use that dominance to trap users and raise prices. Buying competitors beats out-competing them — a classic monopolist playbook that burdens consumers and smothers innovation.
A Warner Brothers takeover would give Amazon exactly what it wants: a massive content library, the third-largest streaming platform, and a lineup of lucrative cable properties. With the deal sealed, Amazon would control more than a third of the streaming video on demand market — roughly 50% more than its nearest rival.
Why would antitrust officials hand Amazon even more power in a sector already suffocating under concentration? They likely won’t.
FTC Chairman Andrew Ferguson and the Justice Department’s antitrust chief, Gail Slater, have made clear that they intend to protect small businesses and consumers from predatory corporate behavior.
The Trump administration has backed those promises with action. Within nine months of taking office, the FTC forced Amazon to pay $2.5 million for trapping customers in Prime subscriptions. Ferguson’s vow to ensure that “Amazon never does this again” shows that this White House will not give repeat offenders a free pass.
RELATED: Stop feeding Big Tech and start feeding Americans again
Lexi Critchett/Bloomberg via Getty Images
The regulatory terrain also looks dramatically different from 2022, when Amazon bought MGM — an acquisition the Biden administration should have challenged and likely would challenge today. After that merger, the FTC rewrote its merger and acquisition guidelines to strengthen oversight. President Trump kept those rules and appears ready to use them.
Some critics claim Amazon earned goodwill with the administration by contributing to White House renovation projects. That accusation doesn’t survive contact with the facts. Candidate Trump warned about Amazon’s “huge antitrust problem” as early as 2016. The company has grown eightfold since then. Trump hasn’t softened.
And Amazon hardly functioned as a friend of the right. The company backed Joe Biden heavily in 2020, donating nearly $2.3 million to his campaign. Biden’s FTC did not treat Amazon kindly either, suing the company for “anticompetitive and unfair strategies to illegally maintain its monopoly power.” That case remains unresolved.
The sale of Warner Brothers Discovery will shape the future of American media — either by giving the company a fighting chance to innovate and compete, or by cementing Big Tech control over what Americans watch, read, and hear. If Amazon tries to tighten that grip, I expect the Trump administration to step in.
Let’s hope the sale doesn’t force the administration’s hand.
Free markets don’t need federal babysitters
At a recent competition law symposium in Washington, the Trump administration’s antitrust chief, Gail Slater, made a welcome promise to keep markets open to new competitors and innovation.
That pledge comes at a critical moment. Too many politicians in both parties still believe government’s job is to engineer economic outcomes rather than let consumers decide. That mindset misunderstands what makes markets dynamic — and often locks in the very problems regulators claim they want to fix.
Republicans and Democrats alike have embraced ‘industrial policy’ when it serves their political interests. They call it leadership, but it’s just another form of central planning.
Cronyism takes many forms: subsidies for favored industries, tax breaks for politically connected firms, or lawsuits targeting companies for being too successful.
Take the Biden Department of Justice’s lawsuit against Visa. The administration said it “feared” Visa’s market share, even though the payments space is crowded with competitors — Mastercard, PayPal, Square, Apple Pay, and a swarm of fintech startups. Instead of protecting consumers, the Justice Department tried to punish one company for competing well and dictate the terms of an already vibrant market.
That’s not protecting competition — it’s manipulating it. When government intervenes this way, it distorts incentives, weakens confidence, and replaces consumer choice with bureaucratic preference.
Consumers always lose
When regulators overreach, consumers pay the price. Every dollar a company spends fending off groundless lawsuits is a dollar not spent on innovation. Every subsidy handed to a politically favored firm skews the playing field against smaller rivals. And every new dictate slows the experimentation that keeps markets alive.
Officials who justify these intrusions claim they’re “protecting competition.” But true competition doesn’t need Washington’s help. It needs Washington to step aside. Entrepreneurs, not regulators, create rivals. Consumers, not bureaucrats, decide who wins. The invisible hand disciplines firms far more effectively than any government lawyer.
Free markets need fewer meddlers
Government’s legitimate role is narrow: preventing fraud, enforcing contracts, and protecting property. That’s a far cry from deciding which companies are “too profitable,” which mergers are “too large,” or which industries deserve “strategic” subsidies. When officials cross that line, they stop refereeing and start playing the game themselves — badly.
This temptation spans parties. Republicans and Democrats alike have embraced “industrial policy” when it serves their political interests. They call it leadership, but it’s just another form of central planning that shackles consumers and businesses alike.
RELATED: Smash the health care cartel, free the market
File photo/Miami Herald/Tribune News Service via Getty Images
The cure is restraint
The best way forward is simple. Washington should stop punishing success and stop handing out favors to friends. It should let consumers and entrepreneurs, not bureaucrats and lobbyists, determine winners and losers.
America’s prosperity was built on open competition and voluntary exchange — not government micromanagement. Crony capitalism is just socialism by another name, and it breeds the same stagnation and corruption.
President Trump’s team understands that prosperity comes from freedom, not favoritism. If policymakers truly care about fairness, they should start by doing the hardest thing in politics: stepping aside.
