Skip to main content

DoJ to investigate cable company stranglehold of Netflix, Hulu: report

Image used with permission by copyright holder

The U.S. Justice Department will investigate whether cable television providers have violated antitrust laws by blocking competition from streaming services like Netflix and Hulu, according to recent reports from Bloomberg and the Wall Street Journal. The companies coming under DoJ scrutiny include Comcast and Time Warner Cable.

The issue at hand is purportedly whether these cable giants use their status as major service providers of both television and Internet to unfairly make deals with content providers in Hollywood. Further, the investigation will look at how tiered broadband plans (and the data caps that come with them) affect services like Netflix, which rely upon a high-speed Internet connection to deliver its services to subscribers. If the companies are found to have used their position as gatekeepers for television content, or purposefully instituted certain Internet access plans to hamper video streaming services, then they would be in violation of the law. 

Recommended Videos

So far, neither Comcast, Time Warner Cable, Neflix, nor Hulu (which is partly owned by Comcast/NBCUniversal) have commented on the DoJ’s alleged investigation. The Justice Department has not yet commented either. 

The as-yet unconfirmed DoJ probe follows Sen. Al Franken’s (D-MN) assertions to the Federal Communications Commission that Comcast’s Xfinity video streaming service, which allows its customers to stream on-demand video to the Xbox 360, violates Net neutrality rules by disregarding its own data caps for videos streamed through Xfinity, while still applying broadband used for Netflix to those caps. Netflix CEO Reed Hastings has made the same allegations.

“Comcast [is] no longer following net neutrality principles,” Hastings wrote on his Facebook page in April. “Comcast should apply caps equally, or not at all. I spent the weekend enjoying four good Internet video apps on my Xbox: Netflix, HBO GO, Xfinity, and Hulu. When I watch video on my Xbox from three of these four apps, it counts against my Comcast Internet cap. When I watch through Comcast’s Xfinity app, however, it does not count against my Comcast Internet cap. For example, if I watch last night’s SNL episode on my Xbox through the Hulu app, it eats up about one gigabyte of my cap, but if I watch that same episode through the Xfinity Xbox app, it doesn’t use up my cap at all. The same device, the same IP address, the same Wi-Fi, the same Internet connection, but totally different cap treatment. In what way is this neutral?

The DoJ’s alleged investigation will include a focus on this issue.

The investigation will also reported look at whether content providers’ practice of offering cable companies far lower prices in distribution deals is a good business practice, or whether it is specifically designed to stifle competition with streaming services like Netflix. 

It will be extremely interesting to watch how this investigation plays out — if it’s happening at all, though that seems highly likely to us. If the Justice Department rules against the cable companies, it may have profound repercussions for the cable industry, which has so far moved into the streaming age kicking and screaming. For those of us who wish to “cut the cord” as soon as possible, without having to sacrifice access to content, we’ll have our fingers firmly crossed while this process plays out.

Andrew Couts
Features Editor for Digital Trends, Andrew Couts covers a wide swath of consumer technology topics, with particular focus on…
3 great HBO Max crime dramas you should watch in July 2025
Frances McDormand in Blood Simple.

Although it’s had more than its fair share of branding issues over the years, HBO Max features an impressive library of movies across a wide array of genres. Because it owns decades of Warner Bros. classics, crime is a deep genre on the service.

We’ve pulled together three movies in that genre that are well worth your time. These movies range in decades and styles, but they’re also a reminder of just how many kinds of movies can fit into the brand descriptor of a crime movie. Check them out on HBO Max:

Read more
If you have to watch one Hulu show this July, stream this one
A man holding a gun stares into the eyes of a woman.

Although it doesn’t receive the same attention as Netflix, and it’s now sort of integrated into Disney+, Hulu remains a pretty excellent source for TV, especially for shows oriented toward adults. If you want to watch something on Hulu, that doesn’t necessarily mean that you have a particular show in mind. 

Thankfully, that’s where we come in. If you’re looking for a Hulu show to watch this July, we’d recommend checking out The Great. This satirical look at the rise of Catherine the Great is well worth checking out, even if it doesn’t sound like the kind of show you’d usually enjoy. Here are three reasons why: 

Read more
3 rom-coms on Netflix you need to watch in July 2025
A woman and a man stand next to each other.

The romance section on Netflix has some heavy hitters in July. What's more romantic than The Notebook? The beautiful drama starring Ryan Gosling and Rachel McAdams has not aged one bit. Trust me, crying remains mandatory, especially at the end. Speaking of tears, A Star Is Born will have you riding the entire wave of emotions from start to finish.

While those two movies are undoubtedly charming, they will leave you in a puddle. This article features three rom-coms that should put you in a better mood. Check out our picks and their streaming information below. 

Read more