Key facts
- The U.S. Justice Department is widening its antitrust inquiry into Fox's $22 billion deal for Roku.
- DOJ staff plans to seek more information through a 'second request' process.
- Lawmakers have expressed concerns about potential political interference and lack of impartiality in the DOJ's review.
- Rivals fear Fox may favor its own content on Roku's platform.
- The deal unites Fox's content with Roku's dominant connected-TV operating system.
The U.S. Justice Department is expanding its antitrust investigation into Fox Corp.'s proposed $22 billion acquisition of streaming platform Roku, according to reports citing individuals familiar with the matter. This widening of the probe, which includes plans for a "second request" for data and documents, suggests potential skepticism from the DOJ regarding the merger's impact on how consumers access streaming content.
Concerns have been raised by rivals and lawmakers that the combination of Fox's content library, including news and sports, with Roku's dominant operating system could lead Fox to favor its own programming. 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." They expressed alarm that the department might "rubber-stamp" the deal or avoid trials in favor of settlements, potentially weakening antitrust enforcement and increasing costs for consumers.
Fox CEO Lachlan Murdoch has previously stated his expectation to run the businesses separately while selling advertising across them. He has also 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.