Feb 6 (Reuters) - The U.S. Department of Justice is

investigating whether Netflix ( NFLX ) used anti-competitive

tactics as part of the streaming giant's proposed $82.7 billion

acquisition of Warner Bros Discovery's ( WBD ) studios and

streaming service, the Wall Street Journal reported on Friday.

In a civil subpoena viewed by the WSJ, ‌the department asked

another entertainment company to "describe any other

exclusionary conduct on the part of Netflix ( NFLX ) that would

reasonably appear capable of entrenching market or ​monopoly

power".

Netflix ( NFLX ) and Paramount Skydance ( PSKY ) covet Warner Bros for its

leading film and television studios, extensive content ‍library

and franchises such as "Game of Thrones", "Harry Potter" and DC

Comics' superheroes Batman and ⁠Superman.

In its subpoena, the ⁠department asked whether either deal

could hurt the competition. It also asked how past mergers of

studios or distributors had affected competition for ‌creative

talent and sought information on how talent contracts vary

between ​studios, WSJ said.

"Netflix ( NFLX ) is not aware of any investigation into our business

outside of the standard merger review process," a spokesperson

for the company said in an emailed ⁠statement to Reuters, adding

that it was "constructively engaging" with ‍the DOJ ​as part of a

standard review of the proposed deal.

Steven Sunshine, a lawyer representing Netflix ( NFLX ), said the

company believes the department is conducting a standard review

of its proposal.

"We have not been ‍given any notice or seen any other sign

that the DOJ is conducting a separate monopolization

investigation," Sunshine said.

The DOJ investigation is at an early stage, according to the

WSJ report.

The WSJ reported that the DOJ is also reviewing Paramount's

proposed acquisition bid, which Warner Bros' board unanimously

rejected by labeling it "inadequate" and "not in the best

interests" of shareholders.

Paramount is pushing to conclude the DOJ's review of its

tender offer within ​the next ‍few weeks, Bloomberg News reported

late on Friday, citing sources familiar with the matter.

The company has been providing the information requested

by the government, the report said, adding that once that

process ​is completed, a 10-day waiting period will begin for the

DOJ to decide whether to challenge Paramount's proposal on

competition grounds.

Paramount, Warner Bros and the Department of Justice did not

immediately respond to Reuters requests for comment.

Netflix ( NFLX ) co-CEO Ted Sarandos was grilled by U.S. senators at

a hearing on Tuesday over how the potential deal would affect

competition across the entertainment industry.

The bid could also face investigation in the UK and the

European Union.

More than a dozen British ​politicians and former

policymakers called on the country's competition watchdog to

launch a full review, while the EU's antitrust regulators are

expected to scrutinize rival bids by Netflix ( NFLX ) and Paramount

Skydance ( PSKY ) at the same time, Bloomberg News reported last month.