Warren warns Fox-Roku deal could squeeze free streaming choices
Sen. Elizabeth Warren and other Democrats urged DOJ to scrutinize Fox’s $22 billion Roku deal for antitrust risks and political interference.
By Poppy Nakagawa · Culture Writer
2 min read
A $22 billion media deal is drawing fire on Capitol Hill, with Sen. Elizabeth Warren and other congressional Democrats warning the Justice Department that Fox Corp.’s proposed purchase of Roku could create antitrust problems in the streaming market.
In a letter to Associate Attorney General Stanley Woodward, the lawmakers said the transaction could remove a major rival from the free streaming business and leave viewers with fewer options. They also raised the possibility that the combined company could gain enough power to begin charging for a service that has been free.
The Democrats asked Woodward to ensure the Justice Department’s review is impartial and insulated from political pressure, according to the letter.
Lawmakers flag Roku’s reach
The lawmakers pointed to Roku’s scale as a central concern. In the letter, they said a merged Fox-Roku company could have the ability and the incentive to push viewers toward Fox programming across Roku’s 100 million households.
That kind of steering, they wrote, could put rival programmers at a disadvantage and narrow what consumers see when they use Roku’s platform.
The concern lands squarely in the free ad-supported streaming market, where Fox already owns Tubi. Fox acquired Tubi six years ago, and its proposed Roku deal would expand its presence in the same corner of the streaming business.
Fox and Roku have promised an open platform
Fox announced the Roku acquisition in June. At the time, Fox and Roku said in a joint statement that they remained committed to keeping Roku an “open, partner-friendly platform” and to broad distribution of Fox content.
The companies framed the deal as a boost for Fox in free ad-supported streaming. Warren and the other Democrats are now pressing federal antitrust officials to look closely at whether that boost could come at the expense of rivals and consumers.
The letter does not say the Justice Department has reached any conclusion on the transaction. It asks for a review that the lawmakers say should be free of outside political influence.
A Fox spokesperson did not immediately respond to a request for comment, according to Deadline. A Justice Department spokesperson could not immediately be reached, Deadline reported.
The warning adds another political layer to a deal that would pair one of the biggest names in broadcast and cable television with a major connected-TV platform. For the lawmakers, the key question for regulators is whether a combined Fox-Roku would still treat other streaming players fairly while controlling a major gateway to viewers’ living rooms.
This story draws on original reporting from Deadline.