(CNA, Los Angeles, 13th -综合 international news) California and 11 other U.S. states filed a lawsuit today seeking to block Paramount Skydance's $110 billion (approximately NT$3.5 trillion) acquisition of Warner Bros. Discovery, claiming the largest merger in Hollywood history threatens competition in the film and television industry.

According to AFP, the lawsuit was filed in the U.S. District Court for the Northern District of California, marking a significant shift in the regulatory battle over the deal and a direct challenge to the U.S. Department of Justice under the Trump administration. Last month, the DOJ approved the merger without requiring any asset divestitures or conditions.

Rob Bonta, California's Attorney General who is leading the joint lawsuit, said the merger of two of Hollywood's five major film distributors would leave viewers facing "higher prices, lower quality, and less content."

"In our country, no one is above the law," Bonta said. "California is fighting alongside like-minded states for a free and fair market, not a manipulated one. There are no kings in America, whether in government or in the economy."

The 12 states allege that the transaction between Paramount Skydance and Warner Bros. Discovery violates the Clayton Act, a federal law that prohibits mergers that may substantially lessen market competition.

The Democratic-led states joining California in the lawsuit include Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington.

According to the complaint, the merged company would control approximately 27% of theatrical film distribution and 27% of basic cable channel licensing in the United States. (Translation: Lu Ying-zi) 1150714

FACT BOX

  • Source: CNA (Central News Agency)
  • Category: Taiwan
  • Organizations: Paramount Skydance / Warner Bros. Discovery