Netflix is facing a consumer lawsuit seeking to stop the online video giant’s planned $72 billion acquisition of Warner Bros. Discovery.
The proposed class action lawsuit was filed Monday by a subscriber to Warner Bros.-owned HBO Max, who said the proposed deal could reduce competition in the U.S. 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 $108.4 billion hostile bid for Warner Bros Discovery (WBD) in a challenge to Netflix’s bid.
US federal antitrust laws allow consumers to sue over mergers and acquisitions independently of any lawsuits from federal regulatory agencies, although these cases face high legal hurdles.
Netflix, the world’s largest streaming service, said in a statement: “We believe this lawsuit is meritless and is simply an attempt by the plaintiffs’ bar to draw attention to the settlement.”
The plaintiff’s lead attorneys declined to comment.
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The deal between Netflix and Warner Bros was announced last week after a bidding war that lasted weeks
“Netflix has repeatedly demonstrated its willingness to raise subscription prices even in the face of competition from large-scale rivals like WBD,” the lawsuit states.
The deal between Netflix and Warner Bros was announced last week after a weeks-long bidding war. On Monday, Warner Bros. Discovery’s board of directors announced it would review Paramount’s competing bid.
The lawsuit claimed that the deal with Warner Bros. would eliminate one of Netflix’s closest rivals, HBO Max, and give Netflix control over iconic Warner Bros. franchises, including Harry Potter, DC Comics and Game of Thrones.
Warner Bros. is not a defendant in the lawsuit.
The Bathaee Dunne law firm, responsible for the new case, has pursued other antitrust lawsuits against large entertainment and financial companies.
In one case, the firm represents subscribers to YouTube TV and other platforms in a lawsuit accusing The Walt Disney Co of harming competition in the live pay TV market.
Disney, which has denied any wrongdoing, has agreed to pay an undisclosed amount to settle the case.
The case is Michelle Fendelender v. Netflix, US District Court, Northern District of California, No. 5:25-cv-10521.
Para el demandante: Yavar Bathaee y Brian Dunne de Bathaee Dunne
For Netflix: Not yet listed
With information from Reuters
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