"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."
"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. Netflix, the world's largest streaming service, in a statement said: We believe this suit is meritless and is merely an attempt by the plaintiffs' bar to leverage all the attention on the deal. Lead attorneys for the plaintiff declined to comment."
"The Netflix-Warner Bros deal was announced last week following a weeks-long bidding war. On Monday, the Warner Bros Discovery board of directors said it would review Paramount's competing offer. The lawsuit said the Warner Bros deal would eliminate one of Netflix's closest rivals, HBO Max, and give Netflix control over Warner Bros marquee franchises including Harry Potter, DC Comics and Game of Thrones. Warner Bros is not a defendant in the lawsuit."
An HBO Max subscriber filed a proposed class-action suit aiming to block Netflix's $72bn acquisition of Warner Bros Discovery's studio and streaming businesses, alleging the deal would reduce competition in the US subscription video-on-demand market. Some members of Congress have questioned the proposal and the transaction is expected to face significant US antitrust regulatory scrutiny. Paramount Skydance launched a hostile $108.4bn bid for Warner Bros Discovery, and the Warner Bros Discovery board said it would review Paramount's competing offer. The complaint alleges Netflix has repeatedly raised subscription prices and that the deal would eliminate HBO Max and give Netflix control over major franchises. Netflix called the suit meritless, and Warner Bros is not a defendant.
Read at www.theguardian.com
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