Lawmakers Call For “Impartial” DOJ Probe of Fox’s $22 Billion Roku Deal

A group of lawmakers has called for an “impartial” investigation into the Department of Justice’s (DOJ) review of Fox Corp.’s proposed $22 billion merger with Roku. The lawmakers, led by Democratic politicians including Senator Elizabeth Warren and Representative Becca Balint, are concerned that the antitrust division may be compromised by backroom dealmaking and pressure from powerful lobbies.

The DOJ’s review process is at stake, along with the future of media consolidation. Antitrust enforcement often finds itself caught in a high-stakes game played by influential lobbies and powerful corporations. The lawmakers’ primary concern centers on the potential for Fox-Roku to abuse its market dominance, given Roku’s streaming platform serves as the gateway to TV for over 100 million households.

This would grant the combined entity an unprecedented level of control over content distribution, limiting consumer choice and disadvantaging competitors like Google, Amazon, and Apple. However, the issue at hand is more nuanced than just market dominance. It’s about the very fabric of antitrust enforcement in America.

The DOJ’s role in reviewing mergers has been increasingly politicized, with allegations suggesting that the Trump administration used the merger review system to extract political favors. This raises serious questions about whether decisions made regarding the Fox-Roku deal will be guided by law and facts or swayed by influence-peddling and favoritism.

Stanley E. Woodward’s leadership of the antitrust division is at the center of these concerns. A July 16 letter reveals that Woodward advised federal antitrust enforcers to avoid taking cases to trial and instead opt for settlements. This approach invites backroom deals and weakens the enforcers’ ability to go after antitrust violations.

The lawmakers are right to be alarmed; such practices undermine the integrity of the review process. The Fox-Roku deal is part of a larger trend in media consolidation, with Disney taking control of Hulu + Live TV and Paramount combining with Skydance. This raises concerns about reduced consumer choice and increased market dominance.

However, what’s striking about this particular deal is the manner in which it has been handled by regulators. A pattern of behavior has emerged where regulators prioritize settlements over trials, allowing for behind-the-scenes deals that benefit powerful lobbies rather than consumers. This approach not only undermines antitrust enforcement but also perpetuates a culture of corruption and favoritism within the review process.

The outcome of the Fox-Roku deal will serve as a litmus test for the DOJ’s commitment to antitrust enforcement. If decisions are indeed guided by law and facts, it could mark a turning point in the way media regulations are handled in America. But if backroom deals continue to prevail, it will only reinforce the notion that powerful lobbies hold sway over regulators.

The stakes are high, not just for consumers but also for the integrity of antitrust enforcement itself. The DOJ must ensure that its review is diligent and scrupulously impartial. Anything less would be a betrayal of the public’s trust in its regulatory institutions.