A proposed $72 billion acquisition by Netflix is facing a legal challenge after a consumer lawsuit was filed on December 9 in the U.S. District Court for the Northern District of California. The proposed class action, brought by Michelle Fendelender, a subscriber to Warner Bros.–owned HBO Max, alleges that Netflix’s planned purchase of Warner Bros. Discovery’s studio and streaming businesses would reduce competition in the U.S. subscription video-on-demand market. Announced last week following a weeks-long bidding war, the deal is expected to face significant antitrust scrutiny, with some members of Congress already raising concerns.
The lawsuit claims the transaction would eliminate HBO Max as one of Netflix’s closest rivals and give Netflix control over major Warner Bros. franchises, including Harry Potter, DC Comics, and Game of Thrones. It also alleges Netflix has repeatedly raised subscription prices despite competition from large rivals. Netflix denied the allegations, calling the suit meritless. Warner Bros. Discovery is not a defendant in the case, which is being handled by Bathaee Dunne, a firm known for pursuing antitrust lawsuits against major entertainment companies.
This blog is intended to provide information to the general public and to practitioners about developments that may impact Oregon class actions.
