Lawsuit argues that proposed deal threatens to reduce competition in US subscription video-on-demand market
Netflix has been hit with a consumer lawsuit seeking to block the online video giant’s planned $72bn acquisition of Warner Bros Discovery’s studio and streaming businesses.
The proposed class action was filed on Monday by a subscriber to Warner Bros-owned HBO Max who said the proposed deal threatened to reduce competition in the US subscription video-on-demand market.
Some members of Congress have sharply questioned Netflix’s proposal, which is expected to face significant US regulatory scrutiny under antitrust laws. Paramount Skydance on Monday launched a hostile bid worth $108.4bn for Warner Bros Discovery (WBD) in a challenge to Netflix’s bid.
US federal antitrust laws allow consumers to sue over mergers and acquisitions, separate from any federal regulatory agency lawsuit, though such cases face high legal hurdles.
