Netflix is facing a proposed consumer class action seeking to halt its planned $72 billion acquisition of Warner Bros Discovery’s studio and streaming divisions. The lawsuit, filed on Monday in the Northern District of California by an HBO Max subscriber, argues that the mega-merger would significantly reduce competition in the U.S. subscription video-on-demand market.
The legal challenge comes as the deal attracts mounting political and regulatory scrutiny. Several U.S. lawmakers have publicly questioned Netflix’s proposal, which is expected to undergo a rigorous antitrust review. Adding to the intensifying battle, Paramount Skydance launched a hostile $108.4 billion bid for Warner Bros Discovery on the same day, directly challenging Netflix’s offer.
Consumers are permitted under U.S. federal antitrust laws to sue over mergers that may harm competition, apart from government actions, though such lawsuits rarely succeed.
Netflix, the world’s largest streaming service, dismissed the lawsuit as “meritless,” claiming it was an attempt to capitalise on public attention surrounding the deal. Attorneys for the plaintiff declined to comment.
According to the complaint, Netflix has repeatedly raised subscription prices despite robust competition from rivals such as Warner Bros Discovery. The suit argues that acquiring Warner Bros would effectively eliminate HBO Max—considered one of Netflix’s closest competitors—and allow Netflix to gain control over iconic franchises including Harry Potter, DC Comics, and Game of Thrones. Warner Bros is not named as a defendant in the action.
The deal, announced last week after an intense bidding war, now faces uncertainty as Warner Bros Discovery’s board has stated it will review Paramount’s competing proposal.
The lawsuit was filed by Bathaee Dunne, a law firm known for pursuing high-profile antitrust cases against major entertainment and financial companies. The firm is also litigating claims on behalf of YouTube TV subscribers accusing the Walt Disney Company of anti-competitive conduct in live-streamed television markets—a case Disney has agreed to settle.
Case Title: Michelle Fendelender v. Netflix
Court: U.S. District Court, Northern District of California
Case Number: 5:25-cv-10521
