Key facts
- The U.S. Justice Department is widening its antitrust inquiry into Fox Corp.'s proposed $22 billion acquisition of Roku.
- The DOJ has issued a "second request" to both companies, seeking additional data and documents.
- This step indicates regulators have further questions about the deal's potential impact on competition and consumers.
- Concerns exist that Fox might favor its own content on Roku's platform, which operates one of the largest connected-TV operating systems.
- Lawmakers have urged the DOJ to conduct an impartial review, free from political influence, amid broader criticism of the department's merger handling.
The U.S. Justice Department is expanding its antitrust investigation into Fox Corp.'s proposed $22 billion acquisition of streaming platform Roku. The department has issued a "second request" to both companies, seeking additional data and documents, which signals a more in-depth review and suggests regulators have further questions about the deal's potential impact on competition and consumers.
Concerns have been raised by rivals and lawmakers that the combination of Fox's extensive content library, including news and sports, with Roku's dominant operating system could lead Fox to favor its own programming. This could potentially result in rival streaming services receiving less favorable placement on Roku's platform. Lawmakers, including Senator Elizabeth Warren and Representative Becca Balint, have written to the Justice Department urging an "impartial" review, free from political interference and "influence-peddling."
Fox CEO Lachlan Murdoch has previously stated his expectation to run the businesses separately and has asserted Fox's ability to "grow and monetize" platforms effectively while distributing partners' content. The DOJ has faced criticism regarding its handling of past mergers, and a close scrutiny of this deal could serve to address some of those concerns, particularly given the political sensitivities surrounding media deals.