Netflix has been hit with a consumer lawsuit seeking to block the streaming platform’s planned $72 billion acquisition of Warner Bros. Discovery’s studio and streaming businesses. The proposed class action was filed on December 8 by a subscriber to Warner Bros.-owned HBO Max. He said, the proposed deal threatened to reduce competition in the US subscription video-on-demand market.
“Netflix has demonstrated repeated willingness to raise subscription prices even while facing competition from full-scale rivals such as WBD,” the lawsuit said. It added that 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.
Some members of Congress have sharply questioned Netflix’s proposal which is expected to face significant US regulatory scrutiny under anti-trust laws.
