A consumer complaint has been filed against Netflix in an attempt to stop the online video behemoth’s proposed $72 billion acquisition of Warner Bros. Discovery’s studio and streaming operations.
A Warner Bros.-owned HBO Max customer filed the proposed class action lawsuit on Monday, claiming that the proposed acquisition will lessen competition in the U.S. subscription video-on-demand market.
Netflix’s plan has drawn harsh criticism from certain members of Congress and is anticipated to be subject to intense regulatory investigation under U.S. antitrust laws. In a response to Netflix’s offer, Paramount Skydance opened a new tab on Monday and made a hostile bid of $108.4 billion for Warner Bros. Discovery (WBD).
Consumers may file lawsuits regarding mergers and acquisitions under U.S. federal antitrust statutes independently of federal regulatory agency lawsuits, however these cases encounter significant legal obstacles.
The biggest streaming service in the world, Netflix, stated in a statement that “we believe this suit is meritless and is merely an attempt by the plaintiffs bar to leverage all the attention on the deal.”
The plaintiff’s lead lawyers chose not to comment.
With a statement from the lawsuit stating that Netflix has demonstrated repeated willingness to raise subscription prices even while facing competition from full-scale rivals such as WBD.
After weeks of bidding, Netflix and Warner Bros. revealed their agreement last week. The board of directors of Warner Bros. Discovery announced on Monday that it will consider Paramount’s rival proposal.
According to the lawsuit, the Warner Bros. purchase would give Netflix control over Warner Bros. popular franchises like Harry Potter, DC Comics, and Game of Thrones while also eliminating HBO Max, one of Netflix’s closest competitors.
In the lawsuit, Warner Bros. is not a defendant.
The new case was brought by the legal company Bathaee Dunne, which has previously sued big banking and entertainment corporations for antitrust violations.
In one instance, the company files a lawsuit on behalf of YouTube TV and other platform subscribers, alleging The Walt Disney Co. (DIS.N) of damaging competition in the live-streamed premium television market.
Disney has agreed to pay an undisclosed sum to settle the dispute, despite its denial of any wrongdoing.
Michelle Fendelender v. Netflix, U.S. District Court, Northern District of California, No. 5:25-cv-10521 is the case.
Yavar Bathaee and Brian Dunne of Bathaee Dunne are the plaintiffs.
Although Netflix has not yet made an appearance.
The Writers Guild of America (WGA) and a number of anonymous filmmakers have expressed significant opposition to the merger, claiming it could result in fewer options for customers, job losses, and a decline in Hollywood’s creative diversity.
At present, Warner Bros. Discovery shareholders and regulators must approve the deal, which is not yet complete. The deal is anticipated to completion in 12 to 18 months, most likely following the mid-2026 split of WBD’s worldwide networks segment into a distinct business.